I2 Agribusiness Innovation and Incubation Center

Desk Study Report on Ethiopia Sesame Value Chain

1. Ethiopia
Ethiopia is a country with very high potential in the Agriculture Sector, with more than 45
percent of the total 1.13 million km2 area being arable. The Ethiopian economy has shifted to a
higher growth trajectory since 2003/04. During 2005/06-2009/10, overall real GDP has grown
rapidly at an average of 11 percent per annum. According to the Ethiopian Ministry of Finance
and Economic Development (MoFED), during the period 2006/07 2010/11, the contribution of
agriculture sector to GDP was recorded at an annual average of 43 percent and employing about
80 percent of the total population which resembles the tremendous role the sector plays.

Chart 1: Average Percentage Contribution of Major Sectors to GDP (2005/06-2010/11)

Services, 44%

Agriculture,
43%

Industry, 13%

Source: MoFED

The significant role of Agriculture is expected to continue in the Growth and Transformation
Plan (GTP) period (2009/10 - 2014/15). During these five years, agriculture is expected to
contribute 38 percent of GDP with annual average growth rate of 8.6 percent, catalyzing the
transformation

of

the

Ethiopian

economy

towards

Agriculture

Development

Led

Industrialization. The Agriculture Sector generates about 70 percent of the countrys export
earnings currently valued at US$2.7 billion. To this end, the GTP has made special emphasis on
agricultural and rural development, industry, infrastructure, social and human development, good
governance and democratization.

There are about 12.6 million smallholder farmers with an average farm size of only 1.2 hectares
whose production accounts for 85 percent of the countrys agricultural output, valued at birr 221
billion (13 Billion USD) in 2011 (Access Capital, 2012). In addition to the fact that agricultural
productivity among smallholder farmers is as low as 1.25 tonnes per hectare for teff, there is also
great variability in productivity across farmers with the most productive farmer producing 3.66
tonnes per hectare compared to the average yield of 1.83 per hectare for cereals (Access capital,
2012).

Ethiopia produced 22.5 million tonnes of crop, of which 95 percent is from smallholder farms
and the remaining from commercial farms. Among other sources of calories such as livestock
outputs, root crops; cereal is the major source of calories making it critical to both household and
national food security in Ethiopia. In 2010/11, over 96 percent of cereals were produced by
smallholder farmers and 65 percent (15.5 million tonnes) of this production was consumed
within the farm-household and only 16 percent was sold for cash or bartered. Taking the average
per-capita calorie requirement of 2.16 quintiles for 2,100 daily calories, the country needs to
produce 18.4 million tonnes of cereals to feed its population of about 85 million people.
During the GTP period, government aims to double the production of smallholder farmers by
implementing measures to raise and sustain high agricultural productivity. The scope to increase
production through area expansion is continuously diminishing as land for agriculture gets
exhausted, making this approach less sustainable in the long term. Number of beneficiaries of
agricultural extension services is planned to increase to 14.6 million by 2014/15 from the
baseline number 5.09 million in 2009/10. The following table depicts some of the major targets
for agricultural development during the Growth and Transformation Plan.

Table 1: Target for Agriculture Growth

Description
Cultivated Land
Production of cereals (mln ha)
Cereals productivity (qt/ha)
Agriculture Input Supply
Supply of improved seeds (mln qts)
Supply of chemical fertilizers( both DAP and Urea)
(m/n tons)
3

Baseline 2009/10

Target 2014/15

9.1
17

9.6
22

0.56
0.83

3.6
1.66

Agriculture Extension
5.09
14.64
Number of beneficiaries of agricultural extension
service (mln)
40
Of the beneficiaries of agricultural services
proportion of women and youth (%)
Improving Soil Fertility
0.6
3
Areas under Vertisol development (mln ha)
2210
37850
Acidic land treated with lime (ha)
Natural Resource Conservation Program
3.21
10.21
Area of land rehabilitated (m/n ha)
3.77
7.78
Land developed under community based water shade
development program (mln ha)
0.894
2.82
Total area of land subjected to soil fertility research
(mln ha)
Small Scale Irrigation Program
853
1850
Land developed under small scale irrigation (mln ha)
Food Security
7.1
1.3
Number of households participate in safery net
programs mln)
0.41
3
Food reserve (mln tones)
Livestock Production and Productivity
390,078
1,493,203
Number of improved hybrid cattle
140,428
537,553
Number of hybrid milk cows
50
145
Improved animal feeding seed in thousand quintal
Agricultural Marketing
At the end of the plan period it has been planned to generate USD 6.58 bln from the
agriculture sector export market by exporting 3.81mln ton of agricultural products,5859
mln flower cut abd 2.35 mln live animals
Agricultural Research
At the end of the plan period new technologies developed in cereals, livestock, soil, forest
development and agricultural mechanization will reach 265,140,41,219, and 836
respectively
Private Investment in the Agriculture Sector
Transfer nearly 3.3 mln ha land to commercial farming investors on transparent and
accountable manner
Source: Growth and Transformation Plan

2. Oilseed Subsector
Oilseeds are the mainstay of the rural agrarian community and important players in the national
economy in Ethiopia (Ethiopian Institute of Agricultural Research, 2011). There are a large
number of oilseeds that are cultivated in Ethiopia, classified into two major categories: Highland
and Lowland Oilcrops. Some of these crops include-but not restricted to-Sesame, Linseed, Noug,
Groundnut, Rapeseed, Sunflower, Safflower, Soyabean, Mustard Seed, Poppy Seed.

Oilseeds play an integral role in the Ethiopian economy, as a source of foreign currency. In the
GTP period, Government of Ethiopia (GoE) will be giving priority to Industry Sector, with
special emphasis on export oriented and import substitution products. Among the priority
industries, Agro-processing is able to contribute to both of these elements. Additionally, MoFED
has identified Oilseeds and Pulses as the most promising export items in the Plan for Accelerated
and Sustained Development to End Poverty (PASDEP) published in September, 2006. In 2012
alone Ethiopian Revenue and Customs Authority (ERCA) estimates the FOB value to be more
than 27 million USD. The contribution of each Oil crop to this figure is as follows:
Figure 1: FOB Value (USD) of Ethiopia Oilseed Export in 2012
Groundnut
6%

Others
5%

Soyabean
1%

Sesame Seed
88%

Source: ERCA

As can be observed from the graph majority of the earning is attributed to Sesame Seed export,
making up for almost 90%. This dominance of Sesame Seed export can also be observed after
2008.

Table 2: Ethiopia Oilseed Export by Net Mass (Ton)

Year
2008
2009
2010
2011
2012

Sesame Seed
131,689
255,783
228,039
253,747
317,653

Linseed
24
650
2,908
3
505

Groundnut
98
135
144
2,130
23,450

Rapeseed
3,295
4,468
14,978
219
404

Sunflower
7
5
83
204
41

Source: ERCA

As can be observed from the table above, the export amount in Sesame Seed is significantly
greater than that of the other Oilseeds over the past five years, and has been increasing in amount
over this time frame. Taking into consideration the maximum amount of export of each Oilseed,
the Sesame Seed export of 2012 is

109 times that of Linseed export (2010);

14 times that of Groundnut export (2012)

21 times that of Rapeseed export (2010); and

1,560 times that of Sunflower export (2011).

The major destination for these crops is China, constituting 58%. Other destinations include
Vietnam, Turkey, Saudi Arabia, Yemen, and United Arab Emirates.

Figure 2: Export destination for Ethiopia Oilseed Export of 2012

Saudi Arabia
Jordan 2%

Japan Yemen
2%
2%
Others
7%

3%

Turkey
6%
United
States
6%

Vietnam
7%

China
55%
Israel
10%

Source: ERCA
6

The Ethiopian Advantage

Agro ecology: Ethiopia has suitable climate for annual and perennial oil plants. Ethiopia
is endowed with multifaceted micro climates suitable for many types of oil crop
cultivation and perennial oil tree plantation; which attracts any level of investment.

Availability of labor force: The country is the third population in Africa with cheep labor
cost; Both oil crop growing or oil tree plantation needs sufficient labor force and that
force is easily available in the country.

Huge demand for food oil: The country imports 80% of its food oil demand. The high
demand of food oil is one of the potential business opportunities in the country. The huge
oil demand in the country could be an attractive investment.

Smallholders dominated subsistence agriculture farming practice. Oil crop cultivation is

dependent on smallholders farming subsistence agriculture. There is enough space with
less competition for commercial farming practice.

Investment Opportunities
This subsector has huge potential for business in production of oil crops, extraction of food oils
and trade. The following disciplines are some of the possible investment opportunities.

Commercial oil seed enterprises

Improved planting materials are scarce and most of the farmers are sowing last season crop of
their own and yield is not satisfactory. The existing private sector and state owned seed agencies
could not satisfy the seed demand. Improved planting material multiplication is one of the areas
of attraction.

Oil Seed cleaning service

Adulteration of oil seeds is the most critical problem of the subsector. Oil seed cleaning facilities
have important role to facilitate the local and exportable oil seed cleaning. Establishing oil seed
cleaning is a huge business opportunity to consider.

Oil extraction and refinery plant

Most of the oil mills have got cottage industries which crashes oil seeds and extract crude oils for
direct consumption. This is unhealthy and below the standards for human consumption. Oil
refineries are very few. As crude oil mills are prohibited not to continue supply of unrefined oils
7

the need for oil refinery is immense. According to the base line study of the draft document only
15 oil processing plants are annually processing 40,000 tons good quality edible oils; otherwise
850 informal, small and micro scale cottage oil seed processors are extracting crude oil.

Fruit oil extraction

The country has suitable climate for perennial oil trees there is no tree origin oil extraction
facility in the country. Oil trees like oleo and palm oil plantation and extraction could be
potential areas for investment.

Safflower petal production & export

Ethiopia has suitable agro ecology and farmers growing practice on Safflower. Safflower petal
has got potential importers and found to be huge business opportunity.

3. Product Description
a. Sesame
A member of the Tubiflorae order and Pedaliaceae family, Sesame Seed (Sesamum Indicum L.)
comprises of 16 genera and is considered as one of the oldest Oil crop known to man- with
official records dating back to BC 2000 in Harappa, Pakistan and BC 1500 on the Medical
Papyrus of Thebes, Egypt (Weiss, Oilseed Crops, 2000). Historians and other researchers have
identified various applications of Sesame in ancient times including herbal remedy; to wash
clothes before soap was generally available; currency; and loan negotiation instrument. It is also
a component of religious ceremonies in India (Sraddha and Pitryana). In more recent years,
Sesame seeds have a number of applications in various forms:

Whole roasted Sesame seeds (Hulled) are sprinkled on bread, bagels, and top hamburger
buns;

Baked into crackers, often in the form of sticks;

Used in cakes in Greece;

Sprinkled on Sushi-type-foods in Japan.

It derives its name from Assyrian name- segisi. Other names attributed to this broad leafed
Oilseed include:

Selit in Amharic;

Sim sim in Arabic;

Sum-sum or Sem-sem- Hebrew;

Gengelim- Brazil;

Gingelly- India;

Benne- Southern states of North America; and

Beniseed- West Africa.

Sesame presents several benefits by being the source of:

High content of Protein- even dietary protein;

Vitamin B-complex which helps to improve the nervous system, organs, metabolism,
eyes, muscles, skin and hair;

Magnesium, Calcium, Iron and Copper- useful for red blood cell production, bone
mineralization, enzyme synthesis and hormone production;

High fiber content; and

High in mono-unsaturated fatty acid, oleic acid- lower bad cholesterol and increase good
cholesterol in the blood and prevention of coronary artery disease and strokes.

Sesame Seed Varieties

Ethiopia has a large number of Sesame varieties, the more popular Humera, Gonder and Wollega
varieties, which are well known in the international market. However, there is only one
institution in Ethiopia that is currently engaged in the research in Sesame Seed for cultivation:
Ethiopian Institute of Agricultural Research (EIAR). This institution has many research centers
located in different corners of the country that are conducting various studies in order to
find/adopt seed varieties that are able to increase productivity with minimal environmental
degradation. A full account of the different types of Sesame Seed Varieties that have been
developed and/or adapted can be summarized by the table below:

10

Table 3: Sesame Varieties in Ethiopia

Variety

Year of
Release

Breeder/Maintainer

Setit-1

2011

Humera-1

Origin

Seed yield (Quintals/ha)

Irrigated

Oil Content
(%)

Rainfall
(mm)

Height
(m)

Days to
Mature

Color

560
1130
760
1130

80 - 90

White

760 - 1130

White

Local
Name

Lab

Farm

HuARC/ TARI

6.2 - 10

5.5 - 9

54

400 650

2011

HuARC/ TARI

5.9 - 9

5-8

52

550 750

Barsan

2010

GoPARC/ SoRPARI

Iidan

2010

GoPARC/ SoRPARI

Obsa

2010

BARC/ OARI

Dicho

2010

BARC/ OARI

AHADU

2007

SARC/ ARARI

BORKENA

2007

SARC/ ARARI

Argane

1993

WARC/ EIAR

Cross

18

7 - 18

48

350 700

90 - 100

Brown

Adi

1993

WARC/ EIAR

Exotic

17

17

46

750

85 - 90

White

Sarkamo
(Sercamo)??
Abasena
(Abe Sina)??
Tate

1993

WARC/ EIAR

Ethiopia

18

18

50

360 -750

90 - 100

Brown

1990

WARC/ EIAR

Ethiopia

14

4 - 14

43

> 700

500 -1200

103 - 120

White

1989

WARC/ EIAR

600 700

< 1650

130

Grey

Mehado-80

1989

WARC/ EIAR

Ethiopia

17

44

300 750

100 - 110

White

1978

WARC/ EIAR

Uganda

12

4 - 12

43

300 -750

100 - 120

Brown

1978

WARC/ EIAR

Uganda

14

4 - 12

43

300 -750

88 - 100

White

T-85

1976

WARC/ EIAR

India

10

5 - 10

44

< 600

110 - 115

White

Humera

Kelafo 74

1976

WARC/ EIAR

Ethiopia

12

3 - 12

43

< 500

110 - 120

Black

Gonder

400 500

Source: Crop Variety Register Issue No. 14, EIAR 2011; Adugna 1993, IAR 1997a Unpublished, Extension package of MoARD

Wollega

Mehado-80, locally known as Wollega, is characterized by a not so sweet taste and preferred for
Sesame Oil extraction. T-85, commonly known as Humera, is recognized for its sweet aroma and
taste while having lower oil content-in comparison to Wollega type. It requires intensive
management during cultivation as it has high possibility of shattering. Its application is common
in bakeries and confectionary. It is this seed variety that is Hulled and further processed into
Tahini. Another white Sesame seed is the Kelafo 74-Gonder type-which is known for its
uniformity and usually sprinkled on top of bread.
According to Humera Agricultural Research Center (HuARC), the agronomic and morphological
characteristics of Setit-1 and Humera-1 are as follows:
Setit-1
Adaptation area: moisture stressed areas in Humera such as Adebay, Mikadra and similar
Sesame growing agro-ecologies.
Altitude (m.a.s.l)
560 - 1,130
Rainfall (mm)
400 - 650
Seed rate (kg/ha)
Row planting (2 - 3kg/ha)
Broadcast (3.5 - 4.5kg/ha)
Planting date
End of June- Early July
Days to flowering
45 - 55
Days to maturity
80 90
1000 seeds weight(g)
3 - 3.5
Plant height (m)
0.90 - 2.1
Crop pest reaction
Resistant to leaf blight
Humera-1
Adaptation area: high moisture areas areas of Humera such as Mikadra (Dansha) and
similar Sesame growing agro-ecologies.
Altitude (m.a.s.l)
760 - 1,130
Rainfall (mm)
550 - 750
Seed rate (kg/ha)
Row planting (2 - 3kg/ha)
Broadcast (3.5 - 4.5kg/ha)
Planting date
End of June - Early July
Days to flowering
50 - 60
Days to maturity
90 - 100
1000 seeds weight(g)
3 - 3.5
Plant height(m)
0.95 - 2.1
Crop pest reaction
Moderately resistant to leaf blight

12

HuARC is currently not only engaged in the research aspect of these two varieties. It is also
growing the seeds and passing it along to Ethiopian Seeds Enterprise (ESE)- the only
commercial Sesame seed distributor in Ethiopia-for circulation.
Another major stakeholder, Ethiopia Commodity Exchange (ECX) has developed its own
classification of the varieties that are being traded on its grounds. These classifications of variety
is highly dependent on the origin of the harvest. Usually, the White Sesame that originates from
Gonder and Humera have higher value in the exchange market as compared to the others.
Laboratories are set up in different locations that will classify the Sesame that is deposited by its
members in the following varieties/types:
Table 4: Sesame Varieties
No.

Sesame Type

Delivery
Location
Humera
(HM)

Symbol

Grade

Origin

Whitish
Humera/Gonder
Sesame Seed

WHGS

1,2,3,4,UG

Kafta Humera, Wolkait, Asgede Tsimbila, Tahtay

Adiyabo, Tsegedie, West Armachiho (Abderafi,
Abreha Jira, Korhumer), and surroundings.

Whitish
Humera/Gonder
Sesame Seed
Whitish
Humera/Gonder
Sesame Seed
Mixed
Humera/Gonder
Sesame Seed

Metema
(MT)

WHGS

1,2,3,4,UG

Metema, Quara and surroundings

Gonder
(GN)

WHGS

1,2,3,4,UG

Tach Armachiho, Tegedie, West Armachiho (Zemene

Merik, Meharish) and surroundings.

Humera
(HM)

MHGS

1,2,3,4,UG

Kafta Humera, Wolkait, Asgede Tsimbila, Tahtay

Adiyabo, Tsegedie, West Armachiho (Abderafi,
Abreha Jira, Korhumer), and surroundings.

Mixed
Humera/Gonder
Sesame Seed
Mixed
Humera/Gonder
Sesame Seed
Whitish Wollega
Sesame Seed

Metema
(MT)

MHGS

1,2,3,4,UG

Metema, Quara and surroundings.

Gonder
(GN)

MHGS

1,2,3,4,UG

Tach Armachiho, Tegedie, West Armachiho (Zemene

Merik, Meharish) and surroundings.

Assossa
(AS)

WWSS

1,2,3,4,5,UG

Adabuldeglu, Sirba Abay, Mao Komo, Bambasi,

Assossa, Sherkole, Homsha, Mengie, Kumruk,
Kamashi, Agelo Meti, Yaso, and surroundings.

Whitish Wollega
Sesame Seed
Whitish Wollega
Sesame Seed

Bure (BR)

WWSS

1,2,3,4,5,UG

Nekemte
(NK)

WWSS

1,2,3,4,5,UG

Bulen, Pawe, Dibatie, Dangur, Mandura, Wonbera,

Guba and surroundings.
Bolodge Genfoy, Kelem Wollega, West Wollega,
East Wollega, Horogudru Wollega, Illubabor, Jimma
and surroundings.

10

Whitish Wollega
Sesame Seed

Addis
Ababa (AA)

WWSS

1,2,3,4,5,UG

Southern Nations and Nationalities People Region

(SNNP), Gambella Region

11

Mixed Wollega
Sesame Seed

Assossa
(AS)

MWSS

1,2,3,4,5,UG

Adabuldeglu, Sirba Abay, Mao Komo, Bambasi,

Assossa, Sherkole, Homsha, Mengie, Kumruk,
Kamashi, Agelo Meti, Yaso, and surroundings.

8
9

13

12

Mixed Wollega
Sesame Seed
Mixed Wollega
Sesame Seed

Bure (BR)

MWSS

1,2,3,4,5,UG

Nekemte
(NK)

MWSS

1,2,3,4,5,UG

14

Mixed Wollega
Sesame Seed

Addis
Ababa (AA)

MWSS

1,2,3,4,5,UG

15

Reddish Sesame Seed

Addis
Ababa (AA)

RDSS

1,2,3,4,UG

Dessie, Belessa, Kemissie, and Surroundings

16

Mixed Reddish
Sesame Seed

Addis
Ababa (AA)

MRSS

1,2,3,4,UG

Dessie, Belessa, Kemissie, and Surroundings

13

Bulen, Pawe, Dibate, Dangur, Mandura, Wonbera,

Guba and surroundings.
Bolodge Genfoy, Kelem Wollega, West Wollega,
East Wollega, Horogudru Wollega, Illubabor, Jimma
and Surroundings.
Southern Nations and Nationalities People Region
(SNNP), Gambella Region

Source: ECX

Irrespective of the studies that have been conducted by the research institute, the yield of the
farmlands around Humera has been reduced to 2.5 quintals/ha. The reason for low yield is as a
result of agronomic practices and shattering seed varieties. Among the most common agronomic
practices in the Sesame Sector is the retention of the previous years harvest to cultivate the
current years harvest. This will decrease the yield and affect the size of the Sesame Seed
collected. In addition to retention, the integral problem faced by growers is the shattering1
characteristic of the varieties that are currently being used. Shattering can attribute for the loss of
more than 30% of the produced sesame during threshing. There has not been any supply- via
import-of non-shattering Sesame seed, neither has the research so far yielded such as variety.
Outside of the varieties that are developed by EIAR, Sesame varieties have been adopted from
neighboring country such as Sudan (previous). Hir Hir
is a whitish Sesame Seed that has an oil content ranging
from 48 50% with application in Bakery, Tahini and
Confectionary. This Sesame variety originates from
Sudan (previous) and has officially and unofficially
crossed the border into the farm lands of the growers in
the Northern Region. Ethiopia Seeds Enterprise (ESE) is
the only commercial seed supplier in Ethiopia. It supplies the seed varieties supplied to it by
EIAR, through MoARD, and imports Hir Hir from Sudan as well.

The release of Sesame Seed release when the Sesame capsule splits is called Shattering. This happens during
ripening.

14

Sudan is also home to other varieties with different colors such as Red Sesame- with 85% oil
content. This variety is both locally consumed and exported to other countries such as Egypt and
Uganda. Maryod is another dominant Sesame variety- a combination of white and red- and is
exported to destinations such as Korea and Japan. Other varieties include Zeirra 1, 3, 6, and 7
(white); Horiya 39 (brown); Kenana-K3 and 2; and Promo K.
Sesame Cultivation
According to FAOSTAT (average: 2002 2012), Ethiopias sesame production is considered as
fifth highest in the World- after Maynmar, India, China and Sudan (former).
Table 5: Sesame Production (average: 2002 2012)
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
Myanmar

India

China

Sudan
(former)

Ethiopia

Source: FAOSTAT

The different characteristics and needs of varieties and growth stages withstanding, Sesame
cultivation has the following trends

Cultivated on an altitude ranging from 200 1,250m above sea level but it best grows at
a height of 500 1,600m above sea level and temperature range of 23 - 28oC- making it
drought resistant. However, if the temperature is to drop below 18 oC, it will retard the
growth of the crop.

15

Attain a height of 10cm on average;

Suitable Rainfall ranges from 500 700mm, on average, but can tolerate 300 1200mm;
and

Soil with pH levels of 5.0 to 8.0 and light texture is preferred but can grow with a lower
yield at a pH level of 4.0; medium to light well drained and deep non-compacted soils.

There are a number of cropping systems that could be practiced with efficient use of resources,
high yield and low environmental pollution. One of these cropping systems is crop rotation. This
method of cultivation will counterbalance the side effects of mono cropping such as decrease in
nutrient of the soil. It also helps to reduce the accumulation of pests; creates less dependency on
chemicals such as fertilizers in order to regulate the soil content- also contributes towards
organic certification; and serves as a tool for risk minimization. Sesame is believed to be the
ideal rotation crop for Cotton, Sorghum, Corn, Peanuts, Alfalfa, Wheat and/or Soybean.
The first step in starting Sesame cultivation is appropriate land preparation. According to the
Extension package offered by MoARD, appropriate land preparation should include ploughing
and properly watering of the land at-least three times. The earlier this phase is begun the better.
The use of appropriate fertilizer, although debatable in terms of Organic Certification, is
encouraged. There are two types of fertilizers that are widely used in Ethiopia: UREA
(Carbamide) and DAP (Diammonium phosphate). For the purpose of Sesame cultivation, 50kg
of UREA and 100kg of DAP is recommended per ha of land. 50% of this amount will be applied
during sowing while the remaining will be applied before the onset of flowering- during the
second weeding when there is moisture on the ground. Additionally, an integral part of the
Sesame cultivation is irrigation. Although not a common practice in Ethiopia, the use of
appropriate irrigation- such as Drip Irrigation- can exponentially increase yield. Additionally, the
by-product of Sesame cultivation (hay) can be used as animal feed.
Sowing of Sesame Seed will be carried out from May July but is dependent on the amount of
rain the area encounters. The more traditional method (broadcasting) of sowing in Ethiopia
entails the random dispersing of seeds on the farmland- a common practice among the Small
Holders which contribute 67 percent of the total Sesame production. This will require 7 10kg
of Sesame Seed per Ha of land. It has been proven time that this method of cultivation is not as
effective as Row planting. A more scientific option, Row planting for Sesame involves rows that
16

are 3 5cm in depth with 30 40cm gap in between rows and 5 15 cm gap between plants. In
this method, the seed requirement is decreased to 5 7 kg/ha. Row planting can easily be
accomplished by the use of different agricultural machineries such as tractors and agricultural
implements (planters).
Although Sesame is an indeterminate species, it has four stages of development: Vegetative,
Reproductive, Ripening, and Drying (SESACO, 2012).

Vegetative
Phase
Germination
Seedling
Juvenile
Prereproductive

Reproductive
Phase

Ripening
Phase

Drying
Phase

Early Bloom
Mid Bloom
Late Bloom

Full Maturity
Initial Dry
Down
Late Dry
Down

The Vegetative Phase consists of 40 days, at the end which half of the crops will have flowers.
Rain during Germination, the first 5 days, could create a crust around the seed retarding its
ability to grow. Sesame exhibits slow pace of growth during the Seedling stage, 6 - 25 days. The
following 11 days mark the Juvenile stage at the end of which development of the first green
buds. The last stage of the Vegetative Phase is the Pre-reproductive stage, consisting of three
days. It is advisable to apply fertilizers at this stage- the end of which is marked by 50% of the
crops developing flowers.
Reproductive Phase consists of 3 stages which take up 40 days. In this phase,

the white flower petals (corolla) drop off the buds, usually in the evening (early bloom
stage);

17

the main stem and branches are putting on capsules (mid bloom stage); and

irrigation will no longer be practiced.

At the end of these 40 days, 90% of the plants have no open white flowers. 81 102 days after
sowing, the leaves will turn yellowish green and fall off the crop. This marks the Ripening
Phase. The end of this phase is marked by physiological maturity (PM)2.
Drying Phase- the last phase in the development of Sesame crop extends over a period of 32
days. During this period, the crop continues becoming yellow and losing its moisture. It is also in
this phase that there is high possibility of shattering- this might be created during the Initial Dry
Down when the crop tries to release the moisture and dry the seed by a small opening in the
capsule. At the end of this phase, the moisture level will reach 6% at which harvest can
commence. The physical manifestation of this stage is when the plants become brittle and
capsules can easily be snapped off.
Sesame is gullible to different types of diseases, insects, and storage pests. Some of the major
ones are:
Disease:

Bacterial blight:
Humid and high rainfall areas (Karobko and Eshetu, 1987).
Transmitted through infected seed.
Control measure: use disease free seed, removal of infected plants and
residue, destroy alternate hosts, weeds and crop rotation. Initial infection
can be avoided by treating the seed in hot water (52 58oC) for 12 14
hours or treating seeds with Streptomycin solution of 250 1000 ppm for
30 mins.

Phylody
Transmitted through Jassid (Orosius albicinctus)
Control: Controlling vectors particularly Jassid, destroying alternate hosts
and infected plants.

Insects:

Sesame Leaf Roller or Web Worm (Antigastra ctalaunalis)

Physiological maturity is when the 75% of the capsules on the main stem have seed and have turned into
cream/tan color.

18

 Controlled by: Dimecron 100 SCW and Malathion 95% ULV at 21lt/ha or
Thionex 25% ULV at 31lt/ha and Dimecron 250 ULV at 21lt/ha.

Green peach aphid (Myzus persicae):

Controlled by: Dimecron 250 ULV, Deltant 200 EC/ULV, and Marshal
250 ULV at 2 lt/ha.

Sesame seed bug (Elasmolomus sordidus):

Controlled: Dimecron 250 ULV at 2 lt/ha or Thionex 25% ULV at 3lt/ha.

Storage Pests:

Red flour beetle (Tribolium confusum) and

Rice moth (Corcyra cephalonica).

Control: Warehouse fumigation by Phosphine or Methyl bromide. Actelic
2% dust at 3g/kg. Fenitrothion 3% Dust at 300g/100 kg or Baythion 1%
DP at 100g/100kg seed. Surface application sacks: Lindane dust at
500g/10-1 m2.

The major inputs and their respective cost breakdown of the common Sesame production in
Ethiopia can be summarized as follows:
Land
According to the Agricultural Investment Support Directorate which has prepared the revised
lease price, a rain fed farms lands located 700 kms away from Addis Ababa costs 111
ETB/hectare per annum. As the area gets nearer to the central market Addis Ababa, the price will
increase by 4.05 birr per kilometer and as it goes far from 700 kms from Addis Ababa, the price
declines by 4.05 birr per kilometer.

When it comes to irrigation farm land, the lease price will be 158 birr per hectare per annum and
it will increase or decrease per every kilometer by 4.17 birr based on its distance from Addis
Ababa. According to this draft lease term, this lease price is subject to revision in every 10 year.
And the investors lease the land for 25 years for annual crops and 45 years for perennial crops.

19

Seed
In 2003/4 EC, the ESE sold 199 quintals of Sesame Seed (Setit-1 and Humera-1). Since the most
common agronomic practice of Ethiopia is retention, its only fair to consider the ECX trading
price for Sesame as the current price of the product- ETB 35.00/kg.

Fertilizers and Pesticides

The fertilizer requirement of Sesame cultivation, i.e. 100kg of DAP and 50kg of UREA per ha
are available at a market price of 15 ETB/kg and 12 ETB/kg. These products are supplied by
Agricultural Input Supplies Enterprise (AISE- although commonly known as AISCo).

According to the information from Adami Tulu Pesticide Processing Share Company- the only
pesticide producer in Ethiopia, there are three types of pesticides prominently used for Sesame-

Ethiolathion (Malathion) is used against armyworm, grasshopper, leaf hopper, sucking insects,
crickets and locusts. The per-hectare requirement ranges between 0.7-1 liter, costing ETB
101.4/liter.

Ethiozinon (Diazinon) is used against stock borer, soil dwelling pests, shoot fly, cut worm, grass
hoppers and army worm. The per hectare requirement is 1-2 liters costing about 172 ETB per
liter.

Ethiothrothion (Fenithrothion) against miner, leaf worm, bollworms, aphids, thrips, caterpillar,
leaf roller, the per-hectare requirement is 1-2 liter costing 206.65 ETB per liter.

Machineries & Equipments

The application of farming machineries and equipments depend on the type of farming practice
used. Smallholder farmers mostly use the traditional farming equipment (handle made tools
supported by oxes or horses). Based on the market assessment conducted around Humera, the per
day rental fee for an oxes with its operator is around 300 ETB and it will take three to four days
to plough and prepare one hectare of land for Sesame plantation.

20

On the other hand, there are three major components in modern farming practice (tractor and
implements such as planter and cultivator) which are supported by accessories. The daily rental
cost for tractors with its operator, assuming the tractor will work for 8 hours per day, is about
3,600 ETB. Using tractor the estimated time that will take to plough is hour.

Human Power Requirement

Cultivation of Sesame is a labor intensive activity especially during land preparation, weeding
and harvesting. These activities need to be carried out very meticulously in order to secure a
higher yield and decrease the possibility of shattering. The highest labor demand is observed
during weeding and harvesting which falls in the period extending from June to November.
According to our estimation based on the information acquired from HuARC, the casual labor
cost for weeding and harvesting (reaping and threshing combined) 3,150 ETB and 1,600 ETB
per ha respectively.

21

Table 6: Detailed Cost Breakdown

22

The most common practice in Ethiopia is the export of Cleaned Raw Sesame. Cleaning is the
simple process of removing foreign material from the harvested Sesame seed. Infact, the first
step in any value addition related to Sesame is the cleaning process. The harvesting process
doesnt emphasize on the removal of foreign matter, therefore the prominent presence of foreign
matter in the Sesame Seed supplied by growers is to be expected. Thus, Cleaning is a
prerequisite for exporting Raw Sesame Seed, although the percentage to which it has to be
cleaned varies for different countries. According to our discussions with various exporters, they
have encountered a demand for Sesame seeds that have been cleaned to a percentage of 99% 99.9%. According to a recent market survey, Cleaned Sesame Seed is available at an average
price of USD 2,055.00/ton. A model SYMHK-1 sesame cleaning machine with cleaning capacity
of 300-10,000 Kg/hour and 0.75kw power consumption costs around 3,500-4,000 USD.

Major components
Vibration Screener
The Vibration Screener (or "Sifter") is used as a first cleaning step and for the selection (particle
size) of seeds or similar products. At the same time, it allows to clean the seeds and to separate
dust and foreign materials.

Separation of Stones/ Gravity Separator

This machine is specially designed to separate seeds from granular material like little stones and
other heavy impurities according to its specific weight. It works with vibration and an inclined

23

ramp where the mixture of objects is separated according to their specific gravity (stone or seed).
Rest of skin and other light objects are aspirated by a turbine and a depressor cyclone.
b. Hulled Sesame
Hulled Sesame Seeds are considered as very nutritious seeds because of its proteins and valuable
minerals. Hulling is a processed of removing the husk/skin from sesame seed after cleaning. The
husk consists of about 17% of the weight of a single Sesame Seed and contains oxalic acid and
indigestive fibre- which in-turn reduces biological utilization ratio and affects the taste of seed.
Hulled sesame seeds are relatively softer and delicious as compared to natural sesame seeds.
There are only three operational Sesame Hulling plants that are currently operational in Ethiopia.
With the exception of one, the organizations employ the Out-grower Scheme and collect
Humera/Gonder type (according to ECX) Sesame Seeds in order to Hull and export. In the
international market, Hulled Sesame seeds are available at a price ranging from USD 2,089
2,500/ ton.

There are two methods of hulling: dry (in which the sesame seeds are dried and pounded to crack
the husks) and wet (which requires soaking the sesame seed in to water, pound, wash and dry it.)
The wet-hulling process minimizes seed breakage while water consumption is high in this
process.
Figure 3: Process involved in Wet & Dry Hulling

Wet Hulling

Dry Hulling
Pounding

Soaking in water
Blowing
Washing
Washing
Drying
Color Sorting

24

Drying
Color Sorting

A JPFQ-120 model full set of Hulling machine, with the functions of soaking, hull removing
and separation of hull and production capacity of 4-5 tons/day, costs around 12,800-16,800 USD.

Major components
Husker (Peeling)
This machine allows peeling through rubbing or abrasion (releases the skin attached to the grain)
of seeds that have gone through a previous cleaning process. It is used in the dry hulling process.
Separation of Skin/ Tumbler Screener
The Tumbler Screener (or "Circular, Oscillating Sifter") performs the selection (particle size) of
seeds and similar products. This way, it allows separating the seeds from other foreign materials
of different size. Its also used to separate the skin of the sesame seeds after the husking (peeling)
process. Due to its configuration and special oscillating movements it offers an excellent control
of size and quality during the separation process.
Washing/ Blanching Unit
The sesame washing machine is used after the peeling process and works by washing the seeds
with pressurized water through rubbing pipes. This machine is considered essential to improve
the aspect and quality of peeled sesame. The process takes place by immersing the sesame in
water and producing a friction of the water against the seeds, using a high pressure, high flow
motor pump.

c. Tahini
Tahini is a paste made of roasted hulled sesame seeds that is used in dressing, hummus, sauces
and traditional foods of Middle East. Tahini is a rich source of essential fatty acids, minerals
vitamins and valuable antioxidants. There are several packages at which the paste is made
available on shelves in foreign markets. The price will vary depending on the package that it is
presented in. For instance, 500gm of Tahini in a plastic container can be available at a price of
USD 7.00, while the same amount can cost USD 10 in a glass jar. In order to better explain the
Tahini production process, please refer to the figure below:
25

Figure 4: Tahini Production Process

Drying

Roasting

cooling

Grinding

Mixing

packing

A full set of Tahini processing machine can be acquired at an FOB price between 10,000-50,000
USD. The following section gives description of the major components.

Major Components
Moisturing/Homogenizing
This system prepares the product prior to entering in the toasting process adding to the product
the necessary humidity- by soaking it in salted water. This process is completed by
homogenizing process of the seeds humidity before entering the drying process.

Drying
This drying machine adjusts the humidity of the product acquired in previous steps like peeling
and washing.
Roasting/Modular Oven
This Modular Oven is used to continuously toast the seeds until the required quality is obtained
and to achieve a homogeneous products roasting of great taste and flavour.
Cooling
This cooling machine is designed to reduce the temperature of the product acquired in previous
steps of drying and toasting.

Grinding
This machine is used to grind the roasted sesame in to Tahini.

d. Sesame Oil
The oil that is extracted from Sesame, has a number of benefits:

26

Lower blood glucose level;

Lowering effects on blood pressure;

Lowering level of sodium in the blood stream; and

Antioxidants in Sesame Oil have skin benefits.

Despite such benefits, Sesame Oil is not a common commodity in Ethiopia. Infact, there are
currently no commercial production and supply of Sesame Oil. A coulple of years ago,
Cooperatives in Assosa had started extracting Oil in order to solve the oil shortage.
Unfortunately the high production cost has resulted in high price of Sesame Oil. As a result, the
practice was discontinued. There is a practice of extracting Sesame Oil in small amounts for
home-use. According to the current market survey, 300ml of Sesame Oil can be found on shelves
at a price of USD 4.00.

Extracted Sesame Oil is liquid at room temperature and can be extracted either through
mechanical pressing and solvent extraction. Mechanical presses, using oil pressing machine, has
the advantage of reduced capital cost, no danger of fire from combustible solvent, simpler
process control and smaller number of skilled staff over solvent extraction process. However,
this processing cannot remove every last trace of liquid (usually oil) from the raw material. A
significant amount remains trapped inside of the cake leftover after pressing. On the other hand
solvent extraction, requires higher capital cost and inputs.

Raw Material Requirements

Cleaned Sesame
The suitable Sesame seed for oil production is the Wollega type Sesame which has a higher oil
content of 44%. Cleaned Sesame is the major input in Sesame oil production. Sesame cleaning
service costs 20 birr per quintal while, if the cleaning machine is to be acquired, a set with
operation capacity of 2.5 tons per hour costs between 3,000 8,000 USD.

Hydraulic oil press machine

Hydraulic press is a machine using a hydraulic cylinder to generate a compressive force. A

model QYZ-410 hydraulic press machine that can press 8 kg/hour with oil yield capacity of 4252% costs between 4,900-5,900 USD.
27

Solvent Extraction Plant

Solvent extraction plants are widely used for extraction of oil from oil seeds like sesame,
Soybean, sunflower, cottonseed, other oil seeds and Oil cakes like Mustard Cake, groundnut
cake. The process plant comprises of preparatory section, Extraction Section, Conditioning
Section, Distillation Section and Recuperation Section. Solvent extracting is the core process for
a complete Edible Oil Extraction Production Line, which uses organic solvent through soaking or
spraying contact methods to extract oil from oilseeds. A SW08009 model solvent extraction
machine with a production capacity of 100 tons per day costs about 100,000 USD.

Auxiliary raw materials

The auxiliary raw materials necessary for refining the oil and packing are phosphoric acid,
bleaching earth, caustic soda, barrel, and plastic (PET) bottles. All auxiliary materials except
phosphoric acid are locally available.

Packaging
Sesame oil can be packed by glass, plastic or tin can container of different size.

Human Power Requirement

According to the estimation conducted by the Ethiopian Chamber of Commerce, to run oil
processing plant with 1,200 tonnes annual production capacity, about 48 human power will be
required only for direct production.

Utilities

The basic utilities required for oil processing are electricity, water and fuel oil. The estimated per
liter utilities cost is about 2.2 ETB.

28

Figure 5. Sesame oil: Input Requirements

29

Other Sesame Products

There are a number of Sesame products that are available in Ethiopia. Confectionary product- in
the form of sweetened Sesame-is available in small quantities in Supermarkets.

B. Market Analysis
a. Demand
Even though Sesame is an export-oriented product, there is still a small degree of local
consumption. According to the market survey that was conducted, 45% of the individuals
interviewed didnt consume Sesame at all. The reasons that were stated for this were taste
preference, unavailability, unawareness of the product specifically on how to use it, and price.
The remaining 55% consume it in the raw form, Tahini, Sesame Oil and Confectionaries. On
average, these individuals will spend ETB 55 per month on Raw Sesame Seed and for the
purpose of sprinkling on bread. According to this study, individuals spend an average of ETB 77
on the purchase of Tahini and ETB 50 on Sesame Oil per month. The reason for selecting these
products rests among three reasons- taste preference and health benefits. The preferred types of
Sesame for such purposes are the Humera and Gonder Sesame. In fact, 100% of the individual
raw Sesame consumers, prefer local varities rather than imported ones. The reasons stated for
such a preference include accessibility, health benefits, and quality. Although, 11% of the raw
Sesame consumers seem ambivalent toward the decision between Import and Local Sesame Seed
variety. Additionally, the Sesame seed that is imported from Sudan, Yemen, and Saudi Arabia is
also mentioned as the source countries that are preferred for Tahini. Majority of the Tahini
consumers prefer imported brands in comparison to locally supplied one. Such a preference is
made as a result of quality preference and local brand un-availability.
A survey was conducted among Bakeries in Addis Ababa in order to have a better understanding
of their demand. 60% of the respondents sprinkle Sesame on the bread, while the remaining 40%
dont use Sesame because it is expensive and unawareness of the product. There is, however, a
high degree of unawareness of the type of Sesame seed being used while 33% use Humera type
Sesame. 67% of these purchases are made on a monthly basis while 33% purchase it on a weekly
basis. On average 6kg of Sesame is purchased per month at a price of ETB 63/kg. A majority of

these purchases are made from Merkato. Generally, the bakeries in Addis Ababa believe that
Sesame is:

Expensive;

High quality; and

Fairly available.

With regard to the supply of Sesame seed for cultivation- as in seed supply in other types of Seed
as well- is carried out in a series of steps. There are a number of entities that mediate between
small holders and MoARD. The movement of information regarding the amount of demand is as
follows:
Figure 6: Flow of Seed demand

Small Holder Farmers

Kebelle
Woreda
Zone
Kilil
MoARD

According to the data provided by MoARD, the Sesame seed demand for 2004/05 EC was 5,843
quintal. The contribution of the different regions towards this amount can be clearly observed in
the table below.
Table 7: Demand of different Regions

Region
SNNP
Oromia
Benishangul Gumz
Afar
31

Amount
(Quintal)
2,280
3
150
50

840
1,170
1,350
5,843

Somali
Amhara
Tigray
Total

Source: MoARD

b. Supply
Sesame Seed Variety Supply
MoARD will issue a bid for interested and qualified organization that will be able to supply this
amount. But the only organization that is able to supply Sesame Seed in Ethiopia is ESE. The
maintainer of Sesame Seed variety has custody of Breeder and Pre-basic Seed. The basic seed is
the progeny of the Breeder/Pre-basic Seed that is grown on Basic Seed production fields under
the supervision of seed agencies. These seeds will in turn be used in order to grow Certified
Seed on farmlands. It is the Certified Seed that is distributed to Small Holder and/or Commercial
farmers for cultivation.
Figure 7: General Seed Types

Breeder Seed

Pre-basic Seed

Basic Seed

Certified Seed

Although the demand for the period, 2004/05 EC was 5,843 Quintal, ESE was only able to
supply 199 Quintals of Setit-1 and Humera-1.
32

Sesame Production in Ethiopia

Together with other Oilseed products, Sesame forms part of agricultural commodities that are
vastly produced in Ethiopia. According to CSA report, around 893,883 small holder farmers are
engaged in sesame production in the year 2011/12 with total annual production of around 2.5
million quintals. Although dominated by small holders, the cultivation of Sesame in Ethiopia is
also accomplished by Commercial farms- creating a direct and indirect employment
opportunities for around 1.5 million people.
The four major Sesame producing regions in Ethiopia are Amhara, Tigray, Oromia and
Benishangul-Gumuz-each respectively holding a share of 39%, 29%, 23% and 9% to the total
production volume in 2011/12.
Ethiopia has been significantly increasing its supply to world markets. The main importers of
Ethiopian Sesame are China; which is also a major sesame exporter, Israel, and Turkey.

Figure 8: Major Sesame Export Destinations from Ethiopia (2003 2012)

United Arab
Emirates
2% Greece

3%
Saudi Arabia
3% Yemen
4%
Jordan
5%

Japan
1%

Others
12%
China
48%

Turkey
8%
Israel
14%

Source: ERCA

In the long term, there is high potential for increasing the Ethiopian export of Sesame to the
European market. Europe is a major user of sesame seed for bakery applications and
confectioneries. Currently, the main suppliers to European Union countries are India and Sudan.
Like China, India could well reduce its sesame supply to the world market as it focuses
33

increasingly on industrialization instead of agriculture. Therefore, the European market presents

Ethiopia with a good opportunity to complement existing suppliers and even replace them should
their supply decline. The only requirement Ethiopian farmers and traders need to meet is to
adequately prevent the adulteration of seeds of different varieties and clean sesame up to 9999.5% (Wijnands 2007).

In addition, local investment in value-adding activities for the crop is expected to increase the
benefits the country derives from Sesame production, processing and marketing. The first and
most important investment needs to be directed at cleaning and grading equipment, which will
significantly contribute to achieving a level of purity of the crop that meets European Union
standards. However, as the Sesame market in Ethiopia is highly linked with the international
market, it is very volatile following changes in demand and supply trends at the international
arena.

The Sesame production for the period 1997 2011 is as follows:

Figure 9: Sesame Production 1997 - 2011
300,000
255,783

250,000

253,747

228,039
200,000

197,988
153,661
139,653
131,689

150,000
100,000
50,000

Net Mass (Ton)

70,39171,34271,708
49,37349,147
45,297
28,27731,042

0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: CSA

However, despite the growth of sesame production in the past years, the average annual yield per
hectare has not improved in any significant amount.
34

Figure 10: Average yield rate of Sesame in Ethiopia

12
10.1

10
8
6

8.47
6.72

7.26

7.8

7.07

8.25

8.52

7.25

Yield in Hectare

2
0

Source: CSA

As clearly shown in the above graph, the average yield rate of sesame seed in Ethiopia has not
been well above 10qt/ha, which is quite a small figure compared to for instance the average yield
rate of 36qt/ha in India.
Around 384,683 Ha of land in Ethiopia is devoted for the production of Sesame in 2011/12. Out
of this land, the majority is located in Amhara (54%), Tigray (19%), Oromia(19%), and
Benishangul Gumz (8%).
Figure 11: 2011/12 Sesame Cultivation
Tigray

Amhara

Oromia

Benishangul Gumuz

8%

19%

19%

54%

Source: CSA

35

The major Sesame producing areas in Ethiopia are located in the North West and South West
regions. The North West region has the largest yield per hectare. The four major sesame
producing regions in Ethiopia are Amhara (North Gondar), Tigray (West and North Tigray),
Oromia (West Wollega) and Benishangul Gumuz.
Figure 12: Sesame production per Region (2010/11 and 2011/12)
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
-

Tigray

Amhara

Oromia

Production in Quintal 2010/11

884,597

1,577,519

544,242

Benishangul
Gumuz
250,087

Production in Quintal 2011/12

700,260

957,499

552,784

227,981

Source: CSA

The area under cultivation for this period for the major Sesame growing regions in Ethiopia has
been increasing.
According to a market survey conducted earlier on, 60% of the Supermarkets supplied Sesame
products while the remaining 40% state the following reasons for not supplying Sesame:

Unavailability of the product;

Low demand as a result of unawareness of the product among customers; and

Expensive.

On average, 34 kg of Redish-brown and White Sesame seeds are sold at a price of ETB 64 per
month. These products are supplied to them by other traders. These institutions perceive this
product to be of higher quality and packaging. However, the surveyed supermarkets didnt
supply processed Sesame as a result of:

36

Unavailability;

Low demand as a result of unawareness of the products; and

No supply of these products.

Merkato- the largest open market place in Africa- also plays house to Sesame traders. These
traders supply Sesame from three locations- Humera, Wollega, Selale, and Gojjam- however
unevenly. The White Sesame from these locations is perceived to be of higher quality and costs
more. For instance, White Humera Sesame costs ETB 3,600/ quintal while the white Sesame
from Wollega costs ETB 2,800. The Redish Sesame, on the other hand, costs ETB 1,800/quintal
and ETB 2,000/quintal when it comes from Wollega and Selale, respectively. According to the
informal interview conducted, a trader had informed us that the selling price of White Humera
Sesame Seeds can reach upto ETB 5,000 per quintal.
These traders are supplied by brokers who charge a high commission charge for the supply of
Sesame- is currently three times that of the commission they charge for supplying Teff. The
customers of these traders include bakeries, sweet sesame producers, spice suppliers and end
users.
Majority of the seed traders, however, dont supply Sesame because its expensive, has a low oil
content, low demand that stems from unawareness of the products application, and lack of
access to suppliers.
Sesame Processing
Currently there are only three companies in Ethiopia that are operating in Sesame Processing.
Not only are there a small number companies engaged in sesame processing in Ethiopia, but also
the operation of these companies is quite limited to sesame Hulling, apart from one company
(Ambasel Tading House PLC)that is also engaged in Tahini production. Accordingly, no
company in Ethiopia has stepped into commercial oil processing or other industrial utilization of
sesame as of yet.
One key challenge commonly shared among existing Sesame processing companies is access to
traceable and homogeneous raw sesame seed. This has mainly to do with ECX sourcing which,
according to most processors, reduces access to traceable, homogeneous and high quality raw
37

sesame seed for processing. Indeed, one of the main factors that determine the export price of
Sesame, especially for Hulled Sesame, is homogeneity in terms of size, color and origin. Even if
the strict regulation that requires processors to get raw sesame only through the ECX is getting
more relaxed through negotiations and waivers, the alternative option of getting sesame through
a contract farming scheme with small producers and/or cooperatives is also proved of being not
so easy.
Under contract farming scheme, processors avail several services to farmers or their cooperatives
including pre-finance for cultivation and harvesting, as well as extension services on modern
harvesting techniques. Availing pre-finance is considered highly beneficial by many farmers and
their respective cooperatives. This is because farmers normally seek loans to cover their farming
costs, especially the high cost of seasonal labor for weeding, which they mostly get from local
lenders either for a very high interest rate (ranging between 25-40%) or in return for a promise to
sell part of their sesame output for a very cheap price a practice locally known as Shale.
Despite its advantageous features for farmers, main challenge with the contract farming scheme
is enforceability of contracts or lack of guarantee on the part of processors to get the agreed
quality and quantity of sesame after harvest. According to some processors, the volatile or
spiking nature of sesame pricing creates an incentive on the part of farmers and/or cooperatives
to breach their sales contact with processors and supply to the market (including ECX) for a
better price. As a solution to that, farmers and their cooperatives suggest for the conclusion of
two level contracts, having two different pricing mechanisms. Accordingly, while the first level
contract, which will be of a value equivalent to the pre-finance extended, will have a fixed date
for pricing, the second level contract will be open in its price. That way, farmers will lose out
from increasing market price only to the extent of pre-finance they have received. Yet, this might
compromise certainty of the contract or even more its very existence as price is a fundamental
term in any sales contract which needs to be explicitly defined.
The other challenge faced by sesame processors, especially in Tahini processing, is access to
export standard packaging materials. According to Amabsel Trading House (only Tahin
processor in the country) use of food grade and vacuum packaging is largely being required by
many importing countries, access to which materials from foreign markets is noted as another
key challenge.
38

Related challenge sesame processors are facing in Ethiopia is lack of spare-parts and skilled
manpower for the maintenance of processing machineries in the country. According to
processors, operation can at times be interrupted for a month or more due to minor problems in
the machineries which however necessitates the bringing of spare-parts and skilled man-power
from abroad.
Another bottleneck noted by most processors is winning consumers test or preference in foreign
markets, especially for sesame products like that of Tahini and oil that go straight into
supermarket shelf. This indeed is a common problem in the export of almost all agro-processed
products, as foreign consumers are averse to buying processed food products from developing
countries for reasons including health and safety.
On the part of farmers cooperatives, key challenge to enter into value addition activities is
access to finance and technology to get hold of processing machineries and warehousing. As
such most cooperatives are limited to basic cleaning activity required under ECX even which
they mostly carry out through hiring cleaning machineries for an average service fee of 20 Eth
birr per quintal. Cognizant of these challenges, development projects on sesame cooperatives are
underway both under ATA and ACDI/VOCA, aiming to support the processing and marketing
capacity of cooperatives through facilitation of access to finance, building of modern warehouses
and creation of market linkage.
Like that of processors, cooperatives also are lately facing a severe challenge in falling short of
collecting a sufficient volume of sesame from farmers so as to kick start processing. This is due
to the escalating price of sesame at the ECX and thus preference of farmers to supply to the ECX
rather than their cooperatives. According to some cooperatives, recent escalation of sesame price
at the ECX has mainly to do with the involvement of some importers in the business of buying
sesame from ECX for a very high price and exporting it with lesser or no profit margin, only
aiming to access foreign exchange for their import, and thus artificially inflating or distorting
ECX price. Unless there is some way of stabilizing sesame price at the ECX, most cooperatives
fear of being unable to collect any meaningful amount of sesame from farmers for processing
and export.

39

C. Actors Mapping
The key actors of the Sector are categorized in one of the following groups:

Cultivators
Input
Suppliers
Seed
Fertilizers
Insecticide
Agriculture
Machinery
and
Implements

Processors
Raw Sesame
Exporters
Value Addition
Hulled Sesame
Tahini
Sesame Oil

Institutions

International
Brokers

Consulting Firms
Research Institute
Public Institutes
Associations

Sesame
Growers
Commercial
Farmers
Small Holder
Farmers
Cooperatives

Cultivators
1. Seed Suppliers
There is only one organization that is currently engaged in Sesame Seed distribution in Ethiopia:
Ethiopian Seeds Enterprise (ESE). Otherwise known as Ethiopian Grain Trade Enterprise, ESE
was established in 1949- and reorganized in 1999. In addition to Sesame, this institution supplies
Wheat, Maize, Barley, Sorghum, Teff, Haricot bean, Oilseeds (Soybean, Linseed, Rapeseed, etc)
and so on to the different regions in Ethiopia. Additionally, it is also engaged in the Arabica
Green Coffee Bean, Oilseed and Pulses.
As mentioned above, the Basic Seed is supplied by EIAR and via import. By using its own land
and renting the land of Small Holder and Commercial farmers, ESE is able to produce Certified
Seed for the use of Growers all over the country. There are two Sesame Seed varieties that are

40

supplied to it by EIAR- Humera-1 and Setit-1. Additionally, the organization also imports Hir
Hir from Sudan.
The reason why there is low private sector involvement in the supply of Sesame Seed is because
it can be re-sown for up to three times after the seed is released. And this is for those
Commercial Farmers/Small Holder Farmers that dont practice rentention.

2. Fertilizers
According to the Proclamation No. 137/1998, Fertilizer is defined as any man made substance
organic or inorganic including mixture of fertilizer physical mixture of fertilizer and granulated
mixture of fertilizer that is added to the soil or to the plant to supply those elements required in
the nutrition of plants manure, compost, ash, gypsum, or refuse are not considered as fertilizer
materials when they are used for commercial purpose in their original condition and under these
names. In order to be able to trade Fertilizers in Ethiopia at any capacity, a Competence
Assurance Certificate is necessary.

The current supply of Fertilizer is completely dependent on import from destinations such as
Russia, Turkey, Qatar, China, India, and so on. The types of fertilizer types that are being
imported are:

DAP (Diammonium Phosphate)

UREA

Ammonium Sulphate

Sodium Nitrate

This year has witnessed the signing of a contract between Metal Engineering Corporation and
Privatization and Public Enterprises Agency of Ethiopia in order to construct 5 UREA and 3
DAP Fertilizer manufacturing plants. These construction of these facilities are expected to be
completed starting from 3 years from now. Upon completion, the UREA factories will be able to
produce 300,000 Tons while the DAP factory will be able to supply 250,000 Tons annually.
Agricultural Input Supplies Enterprise is the major supplier of Fertilizer in Ethiopia.

41

Agricultural Input Supply Enterprise is a company established in 1984 GC and is currently

operating with 455 employees. Over the years, the capital has increased to reach its current value
of ETB 22,432,000.

It is the major supplier of Fertilizer in Ethiopia. Upon receipt of demand from the Ministry of
Agriculture, the organization will import fertilizers (DAP and UREA) to fulfill the demand of
Farmers Cooperatives. Additionally, the organization also supplies to private organizations and
commercial farmers who are not incorporated in Farmer Cooperatives.

The organization is also engaged in the supply of Chemicals such as Maritine, Diaznone,
Endosulphane and 24D. The organization is currently supplying 379,416 Quintal of DAP;
344,105 Quintal of UREA; and 59,542 Liter of chemicals.

Structure
Agricultural Input Supply Enterprise has three main distribution centers, namely Centeral Main
Sales and Distribution Center, East Main Sales and Distribution Center, and North East Main
Sales and Distribution Center which are located in Addis Ababa, Nazereth and Kombolcha,
respectively. There are four additional sub-distribution centers located in Bahirdar, Nekemt,
Hawassa and Tigray intended to cater to North Western, Western, Southern and Northern parts
of Ethiopia. The main responsibility of these offices to manage and monitor the distribution of
the different materials that are supplied by the 20 stations/stores located in the vicinity of their
vicinity. It is these stores that are doing the actual sale to customers. Some of these stores are
closed and re-opened or sometimes relocated depending on the demand for the companys
products.

Price
The price is determined by the Ministry of Agriculture and a different price is set for the
different locations based on their distance. For comparison reasons here are the prices of DAP
and UREA in 3 different cities: Addis Ababa, Nekemete, and Adama.

42

Fertilizer

Addis
Ababa

Adama

Nekemete

DAP (Quintal)
1,447.75

1,439.40 1,487.60

1,176.00

1,167.65 1,215.85

UREA (Quintal)

The chemicals on the other hand are supplied at the following prices:

Maritine ETB 98.00/ Liter

Diazinone ETB 160.00/Liter
Endolsulphane ETB 127.00/Liter
24D - ETB 66.85/ Liter in Addis Ababa and ETB 67.35/Liter outside of Addis Ababa.

3. Pesticide
Pesticide is a very controlled substance in Ethiopia. Proclamation No. 674/2010 defines Pesticide
as any substances or a living organism intended for preventing, destroying, or controlling

any pest, including vectors of human or animal disease

unwanted species of plants or animals causing harm during or otherwise

interfering with the production, processing, storage, transport or marketing of
food, agricultural commodities, wood and wood products of animal feed stuffs; or

insects or other pests on bodies of animals

and includes substances intended for use as a plant growth regulator, defoliant, desiccant, or
agent for thinning fruit or preventing the premature fall of fruit, and substances applied to crops
either before or after harvest to protect the commodity from deterioration during storage and
transport. The only organizations, Pesticide Dealers3, which are allowed to trade Pesticides are
the ones that have a valid Certificate of Competence from the Ministry of Agriculture and Rural
Development. The requirements for the successful completion of the registration include
complete and accurate completion of the application; efficiency of the pesticide for the purpose
imported; no human and animal health hazards; the Pesticide is not persistent of toxic when
metabolized; benefits outweigh the risks of use under local socio-economic conditions; pesticide
is not banned or severely restricted by an international convention or in another country with an
3

Pesticide dealer means any person engaged in the formulation, manufacture, packing, re-packing, labeling, import,
export, storage, sale, distribution, transport or pesticide application service.

43

equivalent registration scheme; and so on. A registration is valid for five years from the date of
issuance of certificate of registration. An application for the renewal of the registration, including
all the documents required, must be submitted 90 days prior to the expiry of the registration.
Given that all the documents are in order, the registration can be renewed for a period of 5 years.
The Pesticide Dealers that are currently operational in Ethiopia are 40.
Table 8: List of Pesticide Dealers in Ethiopia
No

44

Company Name

Filbert & Company

Chemtex Private limited Corporation

FS Private Limited Company

HEARTS P.L.C.

General Chemical & Trading Pvt. Co

Syngenta Agroservices Agriculture Ethiopia

Marubeni Corporation

Makobu Enterprises

Chemtrade International

10

T.M. Global Business Services PLC.

11

BYSWM P.L.C

12

Tensae International Business Ent.

13

Shell Ethiopia Limited

14

Mobil Oil East Africa Limited

15

Lions International Trading (Pvt) Co.

16

Afro German Chemicals Est. PLC.

17

MITSUI & Co. Ltd. Liason Office

18

Adami-Tulu Pesticides Processing Factory

19

Tadi Zerhin General Trading PLC

20

Hagos legesse

21

Magbanz Pvt. Ltd. Co.

22

Markos Private Limited Company

23

Alem Business Center PLC

24

Rangvet Pvt. Ltd. Co.

25

Omer Haji Woday Import and Export PLC

26

K.M.S.EGGA Trade and Industrial PLC

27

Axum Green Line Trading PLC

28

Girma Teferi General Importer

29

BASF Trade Representative Office

30

D.Get. Pest Infestation Control PLC

31

Beker General Business PLC

32

Mekamba PLC

33

Tropical Pharma Trading

34

Kaleb Service Farmers House PLC

35

Tiret Chemicals PLC

36

GAWT International Business PLC

37

Agrisher trading PLC

38

B-Nyse General Trading PLC

39

Agrisco Commercial & Industrial PLC

40

T.N.M. Business PLC.

Source: Ministry of Agriculture and Rural Development

The information of the pesticides that are imported by each of the Pesticide Dealers are as
follows:

45

No

Trade Name

1
2
3
4
5
6
7

ACE 750 SP
Actara 25 WG
Actellic 2% dust*
Actellic 50 EC*
Actellic 50 EC
Adonis 12.5 UL*
Agro-Lambacin Super 315
EC
Agro-Thoate 40% EC*

Common Name
Acephate
Thiamethoxam 250g/kg
Pirimiphos-methyl
Pirimiphos methyl
Primiphos methyl 50% EC
fipronil 12.5% ULV
Profenfos 30% + LambdaCyhalothrin 1.5%
Dimethoate 40% EC

Beta cypermethrin
Alphacypermethrin 7.5% ULV
Aluminium Phosphide 560
gm/kg
thiamethoxam 20% + metalaxyl 20%
+ difenoconazole 2%
Indoxacarb

List of Registered Pesticides (Insecticides)

Approved uses
For the control of aphids, thrips and caterpillars on flowers.
For the control of aphids, white fly & caterpillar on flowers.
For the control of storage pests on cereals and pulses.
For the control of aphids in cotton.
For the control of mosquitoes (Anopheles arabiensis).
For the control of locusts.
For the control of African Bollworm (Helicoverpa armigera) cotton.

Registra
nt
27
6
6
6
6
3
9

1.

For the control of beanfly (Ophiomiya phaseoli); Bean aphid (Aphis fabae); Thrips (Taenothrips
spp.) ABW (Helicoverpa armigera) on french beans.
2. For the control of aphids (Myzus persicae) and ABW (Helicoverpa armigera) on tomato.
3. For the control of cabbage Aphid and various aphids on cabbage and potato, respectively.
For the control of stalk borer on Maize
For the control of sweet potato butterfly on sweet potato
Insecticide (Fumigant) for the control of maize weevil on maize.

5
5
33

For the control of Russian wheat aphid on barley (To be used as seed treatment pesticide)

For the control of stalk borer on maize, sweet potato butter fly on sweet potato, caterpillars on flowers
& African boll worm on cotton.
For the control of armyworm and other pests on cereals.
For the control of shoot fly, aphids, fleas and stock borer on sorghum.
For the control of African bollworm on cotton.
for the control of maize weevil (sitophillus spp) and flour beetle (Tribolium spp) on stored maize.

9
10
11

Akito 2.5% EC
Alphahock 7.5% ULV
Alphos 56% Tab.

12

Apron Star 42 WS

13

Avaunt 150 SC

14
15
16
17

Basudin 600 EW****

Diazinon
Baythroid 050 EC*
Cyfluthrin
Bestox 7.5 ULV*
Alphacypermethrin
Celphos
Aluminium phosphide 56% table
* Re-registered pesticide
** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that this specific formulation has been that phased
out from their production line.
*** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide, it has been with drawn from sale.
. **** Registration expire

6
11
3
24

List of Registered Pesticides (Insecticides)

No.
18

Trade Name
Confidor SL 200

Common Name
Imidacloprid 200 gm/lt

Approved uses
For the control of Aphids, thrips whitefly & termites on flowers.

Registrant
4

19

Coragen 200 SC

Chlorantraniliprole

For the control of African bollworm (Helicoverpa armigera) on cotton.

20
21
22

Cruiser 350 FS
Cruiser 70 WS****
Cybolt 2.5 ULV*

thiamethoxam 35% FS
thiamethoxam 70% WS
Flucythrinate 2.5% ULV

For the control of Russian wheat aphid on barley (To be used as seed treatment pesticide).
For the control of Russian wheat aphid on barley (To be used as seed treatment pesticide).
For the control of whitefly in cotton.

6
6
8

23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41

Curacron 250 EC/ULV****

Profenofos
For the control of white fly on cotton.
Cymbush 1% Granule****
Cypermethrin
For the control of stalk borer in maize and sorghum
Cymbush 25% EC***
Cypermethrin
For the control of cotton pests on large scale farms
Danadin 40% EC
Dimethoate 400 gm/lt
For the control of cotton Russian wheat aphids (Diuraphis Noxia)on barley.
Danitol 10% EC
Fenopropathrin
For the control of African bollworm on cotton
Decis 0.5 EC/ULV*
Deltamethrin
For the control of African bollworm and leafhoppers on cotton
Decis 0.6 ULV*
Deltamethrin
For the control of African bollworm and leafhoppers on cotton
Decis 2.5 EC*
Deltamethrin
For the control of African bollworm and leafhoppers on cotton.
Decis EC 025
Deltamethrin 25 gm/lt
For the control of aphids, thrips & caterpillar on flowers.
Degesch Plates/Strips
Magnesium Phosphide 56%
For the control of maize weevil on maizegrain/seeds.
Delicia *
aluminium phosphide 56.7%
For the control of storage pests on cereals and pulses.
Deltacal 0.2DP*
deltamethrin 0.2%DP
For the control of maize weevil on stored maize
Deltahock 0.6% ULV
Deltamethrin 0.6% ULV
For the control of sweet potato butterfly on sweet potato
Deltanet 200 EC****
Furathiocarb
For the control of aphids on cotton
Detia Gas-Ex-T*
aluminium phosphide 56.7%
For the control of storage weevils and beetles on cereals and pulses.
Devicyprin 25
cypermetrin
For the control of stalk borer on maize
Diazinon 10%G
Diazinon
For the control of stalk borers on maize and sorghum
Diazinon 60% EC
Diazinon
For the control of armyworm on cereals
Diazol 10G*
Diazinon
For the control of stalk borer on maize and sorghum
* Re-registered pesticide ** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that this specific formulation
has been phased out from their production line. *** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that
it has been with drawn from sale. **** Registration expire

No.
42

Trade Name
Diazol 60 EC*

Common Name
Diazinon 60% EC

43
44
45
46

Dimeto 40% EC
Diptrex SP 95****
Dursban 240 ULV*
Dursban 48% EC*

Dimethoate
Trichlorofon 95%
Chlorpyrifos-ethyl
Chlorpyrifos-ethyl

47
48
49
50
51
52

Dynamec 1.8 EC
Dynamic 400 FS
Ethiodemethrin 2.5% EC
Ethiodemethrin 2.5% WDP
Ethiolathion 5% Dust
Ethiolathion 50% EC

Abamectin 18 gm/lt
Thiram + Carbofuran
Deltamethrin 25 gm/lt
Deltamethrin 25 gm/lt
Malathion
Malathion

47

List of Registered Pesticides (Insecticides)

Approved uses
For the control of pests of cereals, vegetables and oil crop & aphids, caterpillars, whiteflies,
nematodes, termites & cutworms on flowers.
For the control of cow pea aphids on cow pea.
For the control of shoot fly on cereals.
For the control of armyworm, locusts and grasshoppers on cereals and pastures.
For the control of armyworm, locusts and grasshoppers on cereals and pastures & to control
termites.
For the control of aphides, spider mites on flowers.
For the control of snout beetle on maize.
For the control of mealy cabbage aphids on cabbage.
For the control of maize stock borer (Buseolla fusca) on maize.
For the control of maize Weevil (Sitophilus zeamays) on stored maize.
For the cotrol of sweet potato butterfly (Acraea acerata) on sweet potato.

6
6
6
5
1
4
4
4
4
2
15
12
5
6
16
4
7
7
5

Registrant
5
28
2
2
6
6
15
18
18
18
18

53
54

Ethiosulfan 25% ULV

Ethiothoate 40% E.C

Endosulfan
Dimethoate

For the control of African bollworm (Helicoverpa armigera) on cotton.

1. For the control of Aphids on field pea.
2. For the control of Russian Wheat Aphid (Diuraphis Noxia) on
Barley.
For the control of sweet potato butterfly (Acraea acerata) on sweet potato.

18
18

55

Ethiotrothion 50% EC

Fenithrothion

56
57

Ethiozinon 60% EC****

Ethiozinon 60% EC

Diazinon
Diazinon

-For the control of termite damage in hot pepper.

For the control of maize stalk borer (Busseola fusca) and sweet potato butterfly (Acraea acerate) on
maize and sweet potato respecitviely.
For the control of caterpillar, aphids, thrips & whitefly on flowers.

18
18

58

Fastac 10% EC

Alphacypermetrin

59
60
61
62
63

Fastac 7.5 g/l ULV*

Fullongphos
Fyfanon 50% EC*
Gain 20 SL
Gastoxin

64

Alphacypermethrin
Aluminium phosphide
Malathion
Imidacloprid
aluminium phosphide 57%
tablet
Imidacloprid

For the control of African bollworm in cotton.

For the control of maize weevil and other storage pests on stored maize.
For the control of armyworm, locusts and grasshoppers on cereals.
For the control of aphids (Macrosiphum euphorbiae) on potatoes.
For the control of maize weevil and other storage pests on stored maize.

29
26
5
9
22

Gaucho 70 WS
For the control of Russian wheat aphid (diuraphis noxia) on barley.
* Re-registered pesticide
** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that this specific formulation has been phased out from their
production line. *** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that it has been with drawn from sale.
**** Registration expired

18

29

List of Registered Pesticides (Insecticides)

No.

Trade Name

Common Name

Approved uses

Regist
rant
ant

65
66
67
68

Golan 20% SL
Hanclopa 48% EC
Helerat 5% EC
Helmathion 50 Ec

Acetamiprid
Chlorpyrifos
lamda cyhlothrin
malathion 50% EC

69
70
71
72
73
74
75
76
77

Highway 50 EC
ICONET (Icon 2.5 EC)
ICON 10 WP
K-O Tab.*
K-Othrine Moustiquare* SC 1%
Karate 0.8 ULV****
Karate 5 EC*
Lambdahock 5% EC
Lamdex 5% EC

Lambda-cyhalothrin
Lambda-cyhalothrin 2.5 CS
Lambda cyhalothrin
deltamethrin 25% m/m
deltamethrin 1%
lambda-cyhalothrin
Lambda-cyhalotrin
Lambda-cyhalotrin
Lambda-cyhalothrin 5% EC

48

For the control of aphids, thrips, leaf minor & flea beetle on flowers.
For the control of termites on hot pepper.
For the control of bollworm on cotton.
1.
For the control of Aphids and leaf hoppers on maize.
2.
For the control of storage insect pests in storage structures.
For the control ofAfrican boll worm on chick pea
For the control of mosquitoes (Anopheles arabiensis) as a bed net impregnation.
For the control of mosquitoes (Anopheles arabiensis).
For the control of mosquitoes as a bed net impregnation.
For the control of mosquitoes as a bed nets impregnation.
For the control of cotton pests on large scale farms.
For the control of cotton pests on large scale farms.
For the control of maize stock borer on maize.
For the control of maize stalk borer (Busseola fusca Fuller) on maize and aphids, thrips,
Leafhoppers, caterpillars & leaf minors on flowers.

39
28
15
15
15
6
6
8
8
6
6
5
5

78
79
80
81
82
83
84

Litphos 56 TB
Malathion 50% EC****
Malt 50% EC
Marshal 20 UL
Marshal 25% EC*
Marshal 25% ULV*
Marshal/Suscon

For the control of maize weevil in maize store.

For the control of armyworm, locusts and grasshoppers on cereals and pastures.
Insecticide for the control of sweet potato butterfly on sweet potato.
For the control of locust and grasshoppers.
For the control of aphids on cotton.
For the control of aphids on cotton.
For the control of termites of Eucalyptus trees (Eucalyptus camaldulensis; E. citriodora and E.
saligna) and Leucena trees (Laucena leucocephala).
Medopaz*
white oil
for the control of red scale (Aonidiella aurantii); Orange scale (Chrysomphalus dictyospermi);
Purple scale (chrysomphalus aonidum) and Black scale (Parlatoria zizyphus) on citrus alone or in
combination with some organophosphate insecticides.
Megaban Plus
Chlorpyriphos-Ethyl 48% EC
For the control of termites on pepper.
Metasystox R 250 EC*
oxydemethon-methyl
For the control of shoot fly, aphids, fleas, and stalk borer on sorghum.
Neoron 500 EC ****
Bromopropylate
For the control of spider mite on cotton.
Nimbicidine
Neem
For the control of thrips on onion.
* Re-registered pesticide** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that
this specific formulation has been phased out from their production line. *** Canceled from registration upon receipt of a notification, in writing, from the registrant of the
pesticide that it has been with drawn from sale. **** Registration expired

85

86
87
88
89

No.
90
91
92
93
94
95
96

Trade Name
Nuvacron 40 SCW ****
Oscar 20% EC
Oxymatrin 2.4 SL
Phostoxin *
Polo 500 SC
Polytrin C 220 ULV***
Polytrin Ka 315 EC/ULV

97
98
99
100
101
102

Profit 72% EC
Pyriban 48% EC
Pyrinex 24 ULV*
Pyrinex 48 EC
Pyrinex
Quickphos*

103
104
105
106
107
108

Rimon
Rimon Star ULV
Ripcord 5% ULV****
Rufast 75% EW
Runner 240 SC
SD-Toxin

49

Aluminium Phosphide 56% TB

Malathion
Malathion 500 gm/lt
Carbosulfan
Carbosulfan
Carbosulfan
Carbosulfan

List of Registered Pesticides (Insecticides)

Common Name
Approved uses
Monocrotofos
For the control of spider mite on cotton.
Tebufenpyrad
For the control of Spider mites on flowers.
Oxymatrin 2.4% SL
For the control of spider mites, aphids, thrips, caterpillar and leafhoppers on flowers.
aluminium phosphide
For the control of storage pests in warehouses.
Diafenthiuron 500 SC
For the control of Aphids (Aphis gossypii) on cotton.
profenofos + cypermethrin
For the control of locust and grasshoppers.
Profenofos 300 gm/lt +
For the control of African bollworm on cotton.
Lambdacyhalothrin 15 gm/lt
Profenofos
For the control of pea aphids (Acyrtosiphon pisum) on field pea.
Chlorpyrifos
For the control of African boll worm in cotton.
chlorphyrifos-ethyl
For the control of armyworm on cereal and pasture
chlorpyrifos-ethyl
For the control of armyworm on cereals and pasture
Chlorpyrifos 48% EC
For the control of Termites on hot pepper
aluminium phosphide 56%
For the control of storage pests
W/W Tablets
Novaluron
Insect Growth Regulator (IGR) to control stalk borer on maize
Novaluron + Bifenthrin
For the control of African boll worm on cotton.
Cypermethrin
For the control of African bollworm, leaf worm and thrips in cotton
Acrinathrin
For the control of spider mites, aphids & thrips on flowers.
Methoxyfenozide
For the control of false codling moth on citrus.
Aluminium Phosphide
For the control of storage insect pests on maize

15
1
33
3
3
3
3
5

26
5
6
34

Registrant
6
29
27
2
6
6
6
15
22
5
5
5
5
5
5
8
5
2
30

109
110
111
112

Secure 36% SC
Selecron 720 EC*
Sevin 85% WP*
Shenphos 57% Tablet

Chlorfenapyr
Profenofos "Q" 720g/l
Carbaryl
Aluminium Phosphide

113
114

Success Bait
Sumithion 50% EC****

Spinosad
Fenitrothion

For the control of red spider mites & caterpillars on flowers.

For the control of maize stalk borer on maize
For the control of armyworm, grasshoppers Wellobush cricket on cereals & pasture
For the control of maize weevil (Sitophilus spp.) & flour beetle (Tribolium spp.) on stored
maize.
For the control of Fruit fly on guava.
For the control of armyworm & locusts on cereals & pastures, Grasshoppers under the
supervision of extension agents

* Re-registered pesticide
** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that this specific formulation has been phased out from their
production line.
*** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that it has been with drawn from s
**** Registration expired

No.

Trade Name

Common Name

115
116
117
118
119
120
121
122
123
124
125
126

Sumithion 96% ULV****

Sumithion 95% ULV****
Suprathion 40 EC*
Talic 2% Dust
Talstar 20 ULV*
Thiodan 25% ULV*
Thiodan 35% EC*
Thionex 25% EC/ULV*
Thionex 25% ULV*
Thionex 35% EC*
Torque 550 SC
Tracer 480 SC

127
128

Ultracide 40 EC ****
For the control of scale insects on citrus.
Winner 0.8 ULV
For the control of African boll worm on cotton.
* Re-registered pesticide
** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that this specific formulation has been
phased out from their production line. *** Canceled from registration upon receipt of a notification, in writing, from the registrant of
the pesticide that it has been with drawn from sale. **** Registration expired.

50

Fenitrothion
Fenitrothion
methidathion 400 g/l
Pirimiphos-methyl
Bifenthrin
Endosulfan
Endosulfan
Endosulfan
Endosulfan
Endosulfan
Fenbutatin
Spinosad (a mixture of
spinosyn A & spinosyn B) 480
gm/lt
Methidathion
Lambda cyhalothrin

List of Registered Pesticides (Insecticides)

Approved uses
For the control of armyworm and locusts on cereals and pastures
For the control of armyworm and locusts on cereals and pastures
For the control of scale insects on citrus.
For the control of storage pests (Sitophilus spp.) on stored maize.
For the control of whitefly and red spider mite on cotton
For the control of bollworm on cotton, maize and sorghum
For the control of African bollworm on cotton, maize and sorghum.
For the control of African bollworm on cotton maize, sorghum & tobacco
For the control of African bollworm on cotton, maize and sorghum.
For the control of African bollworm on cotton, maize, sorghum and tobacco.
For the control of Spider mites on flowers.
For the control of thrips and leaf miners on flowers & African bollworm on
cotton.

Registrant
1
1
5
9
3
4
4
5
5
5
29
2

6
5

29
6
4
36
2
1

No.
1
2

Trade Name
Agriherba
Agrocide 72 SL

List of Registered pesticides (Herbicides)

Common name
Approved Uses
2,4-Damine salt 720 gm/lt
For the control of broad leaf weeds on wheat.
2,4-D Dimethyl- amine Salt 720g/lt
For the control of post emergency annual and perennial broad leaf weeds
on wheat.
Glyphosate 360 g/l A.E
For the control of broad spectrum of weeds in coffee and citrus.
2,4-D 720 g/l A.E
For the control of broadleaf weeds in wheat, barley, teff, maize and
sorghum
alachlor 480 g/l
For the control of annual grass and some broadleaf weeds in maize and
soybeans.
alachlor 350 + alazine 200
For the control of grass and some broadleaf weeds in maize
Atrazine 250 gm/lt + Ametryn 250
Herbicide for the control of annual and perennial grasses and broad leaf
gm/lt
weeds in sugar cane.
atrazine 25% + ametryne 25%
For the control of grass weeds in sugarcane
dicamba + mecoprop
For the control of broadleaf weeds in wheat and barley
bromoxynil + ioxynil + mecoprop
For the control of broadleaf weeds in wheat and barley
2,4-D 720 g/l A.E
For the control of broadleaf weeds in cereal crops and sugarcane
2,4-D Amine 720 gm/lt SL
For the control of broad leaf weeds on wheat.
2,2-D
For the control of grass weeds in wheat and Sugar cane.
S-Metolachlor 162.5 gm/lt +
For the control of annual grass & broad leaf weeds on cotton.
Prometryn 250 gm/lt
Prometryn + metolachlor
For the control of broadleaf weeds and grass weeds in cotton
Clodinafop-propargyl 8% +
For the control of grass weeds in wheat.
Cloquintocet-methyl 2%
Clodinafop-propargyl
For the control of grass weeds in wheat.
2,4-D 720 g/l A.E
For the control of broadleaf weeds in cereals (wheat, barley, teff, maize &
sorghum)
Flurasulam 75 G/L + flumetsulam
For the control of broadleaf weeds in cereals
100 G/L SC
2,4-D 720 gm/lt SL
For the control of broad leaf weeds on wheat.
2,4-D 720 g/l A.E
For the control of broadleaf weeds in cereal crops

Registrant
37
35

3
4

Agro-sate 48 SC*
Agro- 2,4-D amine 720g/l A.E*

Alanex 48% EC*

6
7

Alazine 350/200 SE*

Ametrazine 500 SC

8
9
10
11
12
13
14

Atramet combi 50 SC*

Banvel P
Brittox 52.5 EC ****
Calliherbe Super*
Chivad
Chob Amine 720 SL
Codal Gold 412.5 DC

15
16

Codal 400 EC**

Clodinamex 10% EC

17
18

Current 8%EC
Desormone liquid*

19

Derby 175 SC

20
21

Dical
32
Dicopur 720 SL*
5
* Re-registered pesticide
** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that this specific formulation has been phased out from their
production line.
*** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that it has been with drawn from sale.
**** Registration expired

No.
22

Trade Name
Dicopur pp 600 SL

23

Dual Gold 960 EC

51

List of Registered pesticides (Herbicides)

Common name
Approved Uses
Mecoprop 600 G/L Aqueous
For the control of broad leaf weeds in cereals (wheat, barely and teff).
concentrate
S-metolachlor
For the control of broad leaf weeds in haricot bean.

9
9
5
5
2
5
10
8
12
28
38
6
6
28
5
5
2

Registrant
5
6

24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

Ethio 2,4-D 720 SL

Folar 525 FW**
Fuca 75 EW
Fusilade Forte 150 EC
"Fusilade" Super 12.5% EC****
Gallant Super
Gesapax combi 500 FW*
Gesaprim 500 FW****
Glycel 41% SL
Glyphos 48% SL
Glyfos 360 SL
Gramaxone 20% EC*
Granstar 75 DF *
Glyphogan T
Glyphogan 480 SL

2,4-D dimethylamine salt

terbuthylazine + glyphostate
Phenoxaprop-p-ethyl
Fluaxifop-P-butyl
fluzifop-p-butyl
Haloxyfop-R-methyl ester
ametryne + atrazine
atrazine 500g/l
Glyphosate 360 G/L SL
Glyphosate 480G/L SL
Glyphosate 36 SL
Paraquate
Tribenuron methyl
Glyphosate + terbuthylazine
Glyphosate 480 G/L SL

For the control of broad leaved weeds in Tef, wheat. And Sugar Cane.
For the control of broad leaf weeds in coffee.
For the control of Avena Spp. And Phalaris paradoxa in wheat.
For the control of grass weeds in cotton.
For the control of grass weeds in cotton and faba bean.
For the control of annual & perennial grass in rape seed /Brassica napus/
For the control of various weed spp. in sugarcane.
For the control of complex weeds in maize and sorghum.
For the control of broad leaf weeds on coffee and wasteland.
For the control of grass and broad leaf weeds in coffee.
For the control of sedges and perennial grass weeds in coffee.
For the control of complex weeds in coffee plantation.
For the control of broadleaf weeds in wheat.
For the control of broad-leaved weeds in coffee.
For the control of coffee weeds such as Cyprus spp, cynodon spp, Digitaria spp,
Hydrocotyle American, Echnocloa spp, Bidens pilosa, Ageratum conyzoides, Galinsoga
parviflora and conyza albida
For the control of annual and perennial weeds in citrus plantations.
For the control of broad leaf weeds in wheat.
For the control of annual & perennial broad leaf weeds on wheat.
For the control of broad leaf weeds in wheat.
For the control of wild oat and grass weeds in wheat and barley.
For the control of perennial grasses, sedges and broad leaf weeds in coffee.

39
40
41
42
43
44

Hellosate 48 SL
Glyphosate 48 SL
Herb-Kill
2,4-D 720 gm/lt SL
Herbknock
2,4-D Amine Salt 720 G/L
Hond 72% SL
2,4-D Amine 720 gm/lt
Illoxan 28% EC*
Diclofop-methyl
Kalach 360 SL*
Glyphosate 36% SL
* Re-registered pesticide
** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that this specific formulation has been phased out from their
production line.
*** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that it has been with drawn from
sale.
**** Registration expired

No.
45
46
47
48

Trade Name
Ken-amine 720 SL
Lancelot 450 WG
Lasso 480 EC
Lasso/Atrazine 55% SC*

List of Registered pesticides (Herbicides)

Common name
Approved Uses
2,4-D Amine 72% W/V SL
For the control of post emergence broad leaved weeds in wheat.
Aminopyralid 30% + Florasulem 15%
For the control of broad leaf weeds in wheat.
alachlor 480 G/L EC
For the control of broad leaf weeds in haricot bean.
alachlor 35% + atrazine 20%
For the control of annual weeds in maize, soybean and sugarcane.

49
50

Litamine 72 SL
Lumax 537.5 SE

2,4-D
Mesotrione + S-metolachlor +Terbutilazine

52

For the control of broad leaf weeds in wheat.

For the control of pre and early post emergency grass and broad leaf

18
6
15
6
6
2
6
6
24
33
5
6
5
5
5

15
31
33
28
4
12

Registrant
40
2
8
8
15
6

51
52
53

Mamba 360 SL
Mamba Super 480 SL
Mustang

54

Pallas 45 OD

Glyphosate
Glyphosate
(XDF 6.25 G/L + 2,4-D 300 G/L) Suspo-Emulsion
(S.E)
Pyroxsulam

weeds on maize.
For the control of citrus and coffee weeds.
For the control of grass and broad leaf weeds on coffee.
For the control of broadleaf weeds in cereals.

2
2
2

For the control of grass weeds (wild oat, downy brome /Bromus Spp./ and
2
annual broad leaf weeds on wheat.
Primagram 500 FW ****
metolachlor + Atrazine
For the control of broad spectrum broadleaf and grass weeds in maize
6
Puma super 75 EW*
Fenoxaprop-p-ethyl 6.9%
For the control of grass weeds in wheat
4
Primagram Gold 660 SC
(s-metolachlor 290 g/l + Atrazine 370 g/l) SC
For the control of broadleaf and grass weeds in maize and sugarcane.
6
QISH- Fordat
2,4-D
For the control of broadleaf weeds in wheat.
38
Richway 750 WDG
Tribenuron Methyl
For the control of broadleaf weeds in wheat.
15
Roundup 36 SL*
Glyphosate 360 g/l
For the control of complex weeds in coffee
8
Sanaphen D 720 SL
2,4-D 720g/l SL A.E
For the control of Broad leaf weeds in wheat
2
Starane M 64% EC*
Fluroxypyr + MCPA
For the control of broadleaf weeds in wheat
2
Stomp CS
Pendimethalin
For the control of rooboelia weed in maize
29
Stomp 500 E*
Pendimethalin
For the control of rooboelia weed in maize
29
Sugar cane Hoe 500 SC
Ametryn 250 gm/lt + Atrazine 250 gm/lt
For the control of complex weeds (Broad leaf weeds, Grass weeds &
38
Sages
Terminator 480 G/L SL
Glyphosate
For the control of annual & perennial grasses & broad leaved weeds in
32
citrus orchards.
Topik 080 EC*
Clodinafop-propargyl
For the control of grass weeds in wheat.
6
Traxos 045 EC
Clodinafop- propargyl + Pinoxade
For the control of grass weeds in wheat.
6
* Re-registered pesticide ** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that this specific formulation has been
phased out from their production line. *** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that it has been with
drawn from sale **** Registration expired

55
56
57
58
59
60
61
62
63
64
65
66
67
68

No.
69
70
71
72
73
74
75

Trade Name
Trust-Sate 360SL
U-46 KV fluid 600***
U-46 KV fluid 72%*
Velpar 75 DF*
2,4-D PA****
Weedkiller
Zura Herbicide

No.
1
2
3
4

Trade Name
Acrobat WG
Agri-Fos 400 SL
Agro-Laxyl MZ 63.5 WP
Aliette 80 WG

53

List of Registered pesticides (Herbicides)

Approved Uses
For the control of annual & perennial grasses & broad leaved weeds in coffee.
For the control of broadleaf weeds in wheat and barley
For the control of broadleaf weeds on cereals (tef, wheat, barly, maize, sorghum) and sugarcane.
For the control of broadleaf and grass weeds in sugarcane.
For the control of broad leaf weeds in wheat and teff
For the control of broadleaved weeds in teff and wheat
For the control of broad leaf weeds on maize.
List of Registered pesticides (Fungicides)
Common name
Approved Uses
Dimethomorph + Mancozeb
For the control of downy mildew on flowers.
Potassium Phosphite
For the control of downy mildew on flowers.
mancozeb + metalaxyl
For the control of Early blight on tomato and Late blight on potato.
Fosetyl Aluminium 800 gm/kg
For the control of downy mildew, pythium & phytophthora on flowers

Common name
Glyphosate
Mecoprop
2,4-D 720g/l A.E
hexazinone 75% DF
2,4-D 720 g/l A.E.
2,4-D 72 Acid Equivalent
2,4-D 720 g/l A.E

Registrant
15
3
5
2
17
24
26
Registrant
29
27
9
4

5
6
7
8
9
10
11
12
13
14
15

Ardent 50 SC
Bayleton 25 WP*
Benlate 50 WP****
Bumper 25 EC*
Chob Manzeb 80 WP
Collis 20% SC
CURZATE R WP
Daconil 2787 W 75 ****
Delan 500 SC
Electis 75% WG
Equation Pro WDG

Kresoxim
triadimefon 250 g/l
benomyl 50% WP
propiconazole 25%
Mancozeb
Kresoxim-methyl + Boscalid
cymoxinil + copper oxychloride
chlorothalonil 75% WP
Dithianon 500 gm/lt
Zoxamide 8.3% + Mancozeb 66.7%
Famoxadone 22.5% + Cymoxanil 30%

For the control of powdery mildew on pepper.

For the control of rust diseases on wheat and barley.
For the control of bean anthracnose on haricot beans
For the control of leaf and stem rust on wheat.
For the control of late blight on tomato.
For the control of Powdery mildew on flowers.
For the control of late blight on potato and downy mildew on grape.
For the control of coffee berry disease on coffee.
For the control of Downey mildew on flowers.
For the control of late blight on potato.
For the control of downy mildew on flowers & grape & also for the control of potato late
blight on potato.
For the control of late blight on tomato.
For the control of powdery mildew & rust on flowers.
For the control of downy mildew & botrytis on flowers.

16
17
18

Ethiozeb 80% WP
Mancozeb
Flint WG 50
Trifloxystrobin 500 gm/kg
Fostonic 80 WP
Fosetyl
* Re-registered pesticide
** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that this specific formulation has been phased out from
their production line
*** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that it has been with drawn from
sale
**** Registration expire

5
4
2
5
38
29
2
6
29
2
5
18
4
5

List of Registered pesticides (Fungicides)

No.
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

Trade Name
Flowsan FS
Folio Gold 537.5 SC
Folpan 80 WDG
Fungozeb 80 WP
Goldazim 500 SC
Helcozeb 80 WP*
Imidalm T 450 WS
Impulse EC 500
Indofil M-45
Ippon
Iprodione 500 SC
Kocide 101*
Kumulus DF
Mancolaxyl 72 % WP
Mancotan 80 WP
Mancozeb 80 WP

Thiram
Metalaxyl-M 37.5 gm/l + 500 gm/l Chlorothalonil
Folpet
Mancozeb
Carbendazim
mancozeb 80% W/W
Imidaclopride 250 gm/kg + Thiram 200 gm/kg
Spiroxamine 500gm/lt
mancozeb 80% WP
Iprodione 500 gm/lt SC
Iprodione 500 gm/lt
copper-hydroxide
Sulfur
Mancozeb + metalaxyl WP
Mancozeb
Mancozeb

Approved Uses
For the control of root rot diseases on wheat.
For the control of botrytis and downy mildew on flowers.
For the control of anthracnose on papaya.
For the control of late blight on potato.
For the control of powdery mildew botrytis on flowers.
For the control of cercospora leaf spot on statice flowers.
For the control of seed and seedling diseaseson wheat (Seed treatment )
Fungicide for the control of powdery mildew on flowers.
For the control of late blight on potato.
For the control of botrytis on flowers.
For the control of botrytis and alternaria on flowers.
For the control of late blight on potato.
For the control of Powdery mildew on Flowers.
For the control of late blight on tomato.
For the control of late blight (Phytophthora infestans) on potato
For the control of Downey mildew, Botrytes, Black spot and rust on Flowers.

35

Manoxyl 72% WP

Mancozeb 64%+ metalaxyl 8%

For the control of late blight on potato.

54

Common name

Registrant
10
6
5
15
5
15
2
4
22
5
27
5
29
5
33
27
33

36

Matco

For the control of late blight disease (phytophtora infestans) on potato and tomato
and downy mildew (pernospora destructor) on onion.
Maxitan 72% WP
Mancozeb 64% + Metalaxyl 8%
For the control of late blight (Phytophttora infestans) on potato.
Meltatox 40% EC
Dodemorf acetate
For the control of Powdery mildew on flowers.
Melody Duo WG
Iprovalcarp 90 gm/kg + Propineb 600 gm/kg
For the control of Powdery mildew on flowers.
Nimrod 25 EC
Buprimate
For the control of powdery mildew on pepper.
Noble 25 WP*
Triadimefon
For the control of smut (Ustilago Scitaminea Syd.) on sugar cane
Odeon 82.5 WDG
Chlorothalonil
For the control of Late blight on Potato.
Orius 25 EW
Tebuconazole
For the control of rust on flowers.
Ortiva 250 SC
Azoxystrobin 250 g/l
For the control of rust, botrytis & downy mildew on flowers.
* Re-registered pesticide ** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that this specific formulation has
been phased out from their production line. *** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that it has been with
drawn from sale. **** Registration expired

37
38
39
40
41
42
43
44

No.
45
46

Trade Name
Penncozeb 80 WP*
Polar 50% SG

47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66

Polyram DF
Privicur Energy SL 840
Privicur N
Proplant SL
Rex Duo
Revus 250 SC
Ridom 80% WP
Ridomil 5G ****
Ridomil MZ 63.5 WP ****
Ridomil Gold MZ 68 WG
Ridomil Gold MZ 68 WP ****
Rova 500 FW*
Rova 75 WP*
Rovral Aquaflo 500 SC
Sancozeb 80% WP*
Scala SC 400
Score 250 EC
Stroby 50 WG
Systhane 20 EW
Teldor WG 50

55

Metalaxyl 8% + Mancozeb 64%WP

List of Registered pesticides (Fungicides)

Common name
Approved Uses
mancozeb 80% WP
For the control of late blight on tomato.
Polyoxin AL
For the control of powdery mildew on straw berry &Powdery mildew & botrytis on
flowers.
Metiram
For the control of Downy mildew on flower.
Propamocarb hydrochloride
For the control of downy mildew on flowers.
Propamocarb hydrochloride 722 gm/lt
For the control of botrytis, pythium & phytophthora on flowers.
Propamocarb Hydrochloride 722 gm/lt
For the control of downy mildew on flowers.
Epoxiconazole + Thiophanate-methyl
For the control of yellow/stripe rust on wheat.
Mandipropamid
For the control of late blight on potato
Mancozeb 80% WP
For the control of late blight on potato.
Metelaxyl
For the control of fungus spp. on pepper, tomato, orange & apples.
metalaxyl/mancozeb
For the control of fungus spp. on potato, tomato, pepper & onion.
Metalaxyl-M 68% WG
For the control of downy mildew on grape.
metalaxyl - M 4% + mancozeb 64%
For the control of downy mildew on grape.
chlorothalonil 50% FW
For the control of coffee berry disease on coffee.
chlorothalonil 50% FW
For the control of coffee berry disease on coffee.
Iprodione
For the control of Botrytis & Alternaria on Flowers.
mancozeb 800 g/kg WP
For the control of chocolate sport and rust on faba bean.
Pyrimethanil 400 gm/lt
For the control of Botrytis on flowers.
Difenoconazole 250 g/l
For the control of powdery mildew, botrytis & alternaria on flowers.
Kresoxin-Methyl
For the control of Powdery mildew on flowers.
Myclobutanil
For the control of rust on green bean (Snap bean).
Fenhexamid 500 gm/kg
For the control of Botrytis on flowers.

22
33
29
4
5
15
5
5
6

Registrant
5
27
29
4
4
5
29
6
33
6
6
6
6
5
5
4
2
4
6
29
2
4

67
68
69
70
71
72
73

No.
1
2
3
4
5

Thiram Granuflo 80 WP*

Tilt*
Thiovet Jet 80 WG

thiram 80% WP
Propiconazole
Sulfur

For the control of seed decay and damping off disease; on maize and sorghum.
For the control of fungus spp. on teff wheat and barley.
For the control of powdery mildew, downy mildew & botrytis on flowers and Powdery
mildew on grapevine.
Topzol 250 EC
Propiconazol 25% EC
For the control of yellow rust or strip rust on wheat.
Unizeb 80 % WP
Mancozeb
For the control of late blight on potato.
Verita WG
Femamidone 44.4 gm/lt + Fosetyl 667 gm/kg For the control of downy mildew on flowers
Victory 72 WP
Metalaxyl 80 gm/kg + Mancozeb640 gm/kg
For the control of downy mildew, phytophthora and phythium
on flowers.
* Re-registered pesticide ** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that this specific formulation has
been phased out from their production line. *** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that it has been
with drawn from sale. **** Registration expired
List of Registered pesticides (Rodenticides, miticides, avicides, adjuvants, PGL, sticker, Nematodes and house hold pesticides)
Trade Name
Common name
Approved Uses
Rodenticides
Klerat pellets ****
For the control of rats in large stores and in the field for out breaks control under the supervision of
brodifacoum
an expert.
Lanirat Bait 0.005%****
bromadiolone
For the control of field and storage rodents
Storm*
flocoumafen 0.005% pellet
For the control of storage and field rodents
Zinc phosphide
Zinc phosphide 80% Technical
For the control of field rats as a finished bait 4% zinc phosphide. Zinc phospdide 80% technical can
not be sold to the user unless it is formulated to 4% zinc phosphide by the registrant
Ratol*
Zinc phosphide 80% Techical
For the control of field rats as a finished bait 4% zinc phosphide. Zinc phospdide 80% technical can
not be sold to the user unless it is formulated to 4% zinc phosphide by the registrant

Avicides
1
Queletox UL 600****

fenthion

Mocap GR 10

ethoprophos

1
2
3
4
5
6
7
8
9
10
11

Abalone 18 EC
Akrimactin 1.8 EC
Apollo 50 SC
Calypso SC 480
Cascade 10 DC
Floramite 240 SC
Mercur 500 SC
Mitac*
Mitigan 18.5EC*
Oberon SC 240
Floramite 240 SC

Abamectin
Abamectin 18 gm/lt
Clofentezine
Thiacloprid
Flufenoxuron
Bifentazine
diafenthuron
amitraz
dicofol
spiromesifen
Bifentazate

56

For the control of weaver birds (Quelea quelea)

Nematicides
For the control of Nematodes on Flowers
Miticides
For the control of spider mites on flowers
For the control of spider mites on flowers and strawberry.
For the control of different stages of mites on flowers and tomatoes.
For the control of spider mite, aphids and thrips on Flowers
For the control of Red spider mites on flowers.
For the control of red spider mites on flowers strawberry.
For the control of spider mite on Flowers
For the control of red spider mite and whitefly on cotton
For the control of red spider mite in cotton
For the control of spider mite on flowers
For the control of red spider mites on flowers.
Adjuvants, stickers and plant growth regulators

10
6
6
15
5
4
37

Re.
6
6
3
30
5

4
4
5
27
5
4
29
27
27
4
5
4
27

1
2
3

Citowett****
alkylarylpolyglycol 100%
For reducing surface tension and increasing the adherence of pesticides.
Green Miracle
Fatty alcohol
Anti transpirant
Pix 50 EC*
mepiquat chloride 50 g/l or 5%
For plant growth regulation of cotton
* Re-registered pesticide
** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that the manufacturer, Shell, has internationally
withdrawn from the business of pesticides. *** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that,
the manufacturer has decide to phase out the product . **** Registration expired

3
34
3

List of Registered Pesticides (House hold)

No.
1

Trade Name
Baygon****

2
3
4
5

Hardy****
Kilit****
Knoxout 2 FM
Mobil insecticide****

6
7

Roach killer*
Super shelltox F.I.K****

Super shelltox C.I.K****

Common name
Propoxur 1% + Cyfluthrin 0.04% + Dichlorvos 0.5%)
Aerosol
Cypermethrin 0.03% + Dichlorvos 0.99%
dichlorvos 0.7% + tetramethrin 0.14%
Diazinon 23% W/W
tetramethrin = neopnamin 0.20%+ pynamin forte =
d -allethrin 0.250% + Sumithrin = d-phenothrin 0.120%
fenithrothion + cypermethrin+bioallethrin 2.3%
d-phenothrin 0.05% +
teramethrin 0.25%
cypermethrin 0.25% + teramethrin 0.15%

Approved Uses
For the control of cockroaches and Mosquitoes

Re.
23

For the control of common housefly (Musca domestica aerosol)

For the control of cockroaches, mosquitoes and house flies
For the control of cockroaches
For the control of flying household insects

25
20
5
14

For the control of cockroaches, mosquitoes and ants

For the control of flies, mosquitoes and other flying insects

21
13

For the control of cockroaches, ants and other insects in kitchens, rooms offices,
etc.

13

* Re-registered pesticide
** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that the manufacturer, Shell, has
internationally withdrawn from the business of pesticides.
*** Canceled from registration upon receipt of a notification, in writing, from the registrant of the pesticide that, the manufacturer has decide to
phase out the product by the year 2002
**** Registration expired

57

If the original applicant of a registered pesticide wishes to change the trade name, formulation,
active ingredient concentration or use of the pesticide or is replaced by another person, then an
application for registration shall be submitted to the Ministry in order to import, formulate,
manufacture, pack, repack, distribute, sell or label that pesticide. According the data presented by
Ministry of Agriculture, General Chemicals and Trading PLC is the only Pesticide Dealer that
supplies products intended for the use of oilseeds.

Case Study: General Chemicals and Trading PLC

General Chemicals and Trading PLC was established in 1980 EC and formerly working as a
country office of a multinational company called Imperial Chemicals Industries (ICI) in Ethiopia
with a start-up capital of ETB 142,000- an amount that has been maintained over the years. It
was established to engage as an importer, distributor and commission agent of many companies
in multifarious business. It is the only organization that is recognized by Ministry of Agriculture
as a supplier of Pesticide for Oilseeds. It has an annual turnover of USD 15 million.
Offices
GCT operates out of its head quarter, based in Addis Ababa, and seven major branches located
in:

Mekelle;

Nazereth;

Zeway;

Shashemene;

Hawassa; and

Addis Ababa (Merkato and Teklehaymanot)

Product Lines:
The organization imports various agrochemicals, flower fertilizers, vegetable seeds and sprayers
from international companies such as Makhteshim Agan of Israel, Cerexagri of France, Nufarm

58

of Austria, Dupont of France, Agriphar of Belgium, United phosphorus of India and other
European Companies. The full product line:

59

No.

TRADE NAME

COMMON
NAME

CROP

Pests to be controlled

RATE/HA
(Product in
LT or kg)

REMARKS

Manufacturer,
Origin

I. Insecticides
1

Thionex 25% ULV

Thionex 25% EC/ULV

Endosulfan

Cotton, Maize/Sorghum
Vegetables, Oil Crops, Pluses,
Tobacco & Onion

African bollworm (Heliothis SPP).

Thionex 35% EC
1.

Chloropyrifos

Cotton, Cereals and Pastures

Chloropyrifos

Cereals, Maize, citrus, coffee,

vegetables, pastures, teff, beans &
pulses

2.

3.

Diazol 60% EC/ULV

4.
Lamdex 5%EC

5.

Diazol 10G

60

Specially good for Heliothis

without affecting the natural
prediators

Makhteshim
Chemical Works,
Israel

2-2.5lt/ha

Pyrinex 24% ULV

Pyrinex 48%EC

2.5 3 lt/ha

Diazinon

Lambda
Cyhalothrin

Diazinon

Leaf worm, army worm, locust, wollo

bush crickets & grasshoppers

4.5lts(1080
AI)

Army worm, cut worm, teff red worm,

Grasshoppers stalkborers, locust, aphids,
scales, termites & soil born insect Pests

0.5-1Lts(240480AI)
2-3lts(9601440 AI)

Maize, Sorghum, cereals, rapeseed, sesame, citus, sunflower,

teff.

Lepidopterus complex Insect Pests,Red

teff worm

Cotton, Beans, Soyabean

Crucifrae,Maize, Onion, Potatoes,
Tomatoes, Wheat, Barley, Grape
vine, Rice, Ornamentals, Flowers

American bollworm, Aphid, Spiny or

spotted balloworm, Pink bollworm,
Thrips, Mireid, Leaf miner, Aphids,
Cutworms, Diamond backmoth, Stalk
borer, white flies, Leaf miner, Tuber
moth, Leaf eaters, midge, Grape midge,
Tortix, Flea beetle, Spidermite
Stalk borers, cutworms, thrips,
flea
beetles, wireworms

Maize, sorghum

1-2lts (600122g a.i.)

200 400ML/HA

5 10kgs
(5001000A.I)

Specially effective against

cotton leaf worm

Specially effective on stalk

borer, grasshoppers,
cutworms, termites and other
soil born insect pests
Exactly same activity as
pyrinex 48% EC

Specially effective against

cotton leaf worm and
bollworm

Specially good & easy for

hand application for stalk
borers of all spp. And
cutworm

Makhteshim
Chemical Works,
Israel
Makhteshim
Chemical Works,
Israel
Makhteshim
Chemical Works,
Israel

Makhteshim
Chemical Works,
Israel

Makhteshim
Chemical Works,
Israel

No.

TRADE NAME

6.

Fyfanon 50%EC/ULV

CROP

Pests to be controlled

RATE/HA
(Product in
LT or kg)

Wheat, Barley, Teff, Maize,

Sorghum, Oil Crop, Pulses,
Beans, Vegetables, Stored grain
products, Plantation Crops, Public
Health

Armyworm, locusts, Grasshoppers, stalk

Brorers, Teffred worm shootfly heliothis
SPP., Leaf Hoppers, Weevils, Flea
Beetls, Aphids

1 2lts(0.51kg AI)

COMMON
NAME
Malathion

7.

Suprathion 40% EC

Methidathion

Citrus

8.

Medopaz

White Oil

Citrus

9.

10.

Mitigan 18.5%EC

Akito 2.5 EC

Dicofol

Scale insects (all scale spps)

Red Scale, Orange Scale, Purple Scale,

and Black Scale.

Cotton, citrus, mangoes, tea

ornamentals, tomatoes,
Cucumbers etc.

All species of spider mites soft bodied

mites & others

Beta
Cypermethrin

Maize, Vegetables, cotton, pulses

Stalk borer, African bollworm, Jasids,

Leafworm, Whitefly, Thrips

150
CC/100Lts of
spray
mixture
1.75% to 2%
of the
Sprayed
Volume
(1750 ml. to
2000ml. Oil
in 100 litres
of water.)
2 3 Lts
(370 555)
A.I
1.2 -2lts/ha
(30-50 gai/ha)

REMARKS
Wide activity and well known
by Ethiopian Farmers for
Armyworm control

Safe for natural enemies

Almadine
Corporation SA,
Israel

Specially effective against red

spidermite in cotton, orchards,
Vegetables, other Crops.

Agan Chemical
Manufacturer Ltd,
Israel

Cerexagri S.A,
France
United Phosphors
Ltd, India

Diptrex SP 95

Trichlorofon

Teff, Wheat, Srghum, Millet oil

crops, Vegetables

Shoot fly, Cutworm, Betles, Fruti fy,

Bollwoerm,

0.75-1kg/ha

Specially effective against

shoot fly

12.

Rimon 10% EC

Novaluron

Maize, Cotton, Vegetables, pulses

African bollworm, Stalk borer, whitefly,

leafworm

0.75 1lt/ha

IGR-Safe for natural enemies

13.

Knox out

Diazinon

House hold

House hold pests (bedbug, flea,

cockroach)

42ml/lt/2om2

Long lasting effect

14.

Metasystox 250
R
Winner 0.8%ULV

Dimeton-SMethyl
Lambda
Cyhalothrine

Cotton, Cereals Pulses,

Vegetables
Cotton, vegetables, Maize

15.

61

African bollworm, stalk borer

1-1.5lt/ha
2.5 lt/ha

Cheminova A/S,
Denmark

Makhteshim
Chemical Works,
Israel

11.

Aphids, Thrips, Jassids, White fly

Manufacturer,
Origin

Specially effective on Jassid

and Aphids
Effective on ABW

Makhteshim
Chemical Works,
Israel
Cerexagri S.A,
France
United Phosphors
Ltd, India
Hockley
International Ltd,
UK

No.

TRADE NAME

16.

Danadim

COMMON
NAME

CROP
Barley

Dimethoate400
gm/lit
17.

Coragen 200 SC

Pests to be controlled

Chlorantranilip
role

RATE/HA
(Product in
LT or kg)
1lit/ha

Russian wheat aphid (Diuraphis noxia)

Cotton

REMARKS

Manufacturer,
Origin

Two times per season on

weekly interval

Cheminova A/S ,
Denmark

125ml/ha

Dupont de
Nemours S.A.S
,France

ABW

II. Fungicides
18.

Kocide 101

Copper
hydroxide

Potato, tomato, pepper onion &

other vegetables, coffee, tea,
citrus, etc.

Early & late blight, leaf spot, bacterial blight, brown spot, leafrust, coffee berry
disease, scab.

19.

Penncozeb 80WP

Mancozeb

Citrus, mangoes, banana, papaya,

beans, pea, groundnut, onions,
ornamentals, vegetables, wheat,
Grapevine, Cucurbits.

Leafspot, fusarium, scab, early, and late

blights, downy and Powdery mildew,
rust, anthracnose, cercospora leafspots,
Sigatoka

2-2.5 kg for
all diseases
CBD and rust
on coffee.

Extremely good for pepper,

potato, tomato and other
vegetables well known by
Ethiopian Farmers. Contact
action

Dupont de
Nemours S.A.S,
France

Effective to control a number

of fungus diseases on crops
listed.
Contact action with curative
property
Contact action with curative
property

Cerexagri S.A,
France

20.

Unizeb 80% WP

Mancozeb

Potato/Tomato

Early and late blight downy mildew

2.5 - 3kg
(800
2400a.i.)
2.5 3kg/ha

21.

Mancolaxyl 72% WP

Mancozeb 64%
+ Metalaxyl
8%

Potato/Tomato, Onion

Early and late blight downy mildew

3kg/ha

Contact and systemic action

with curative and preventive
property

United Phosphors
Ltd, India

22.

Rova 75WP
or

Coffee, vegetables flowers, and

ornamentals

Coffee beerry disease and various other

fungal diseases, leaf rusts

3 4kgs

Specially to control coffee

berry disease.

Almadine
Corporation SA,
Israel

Chlorothalonil

5 lts
Rova 500SC

62

United Phosphors
Ltd, India

No.

TRADE NAME

23.

Bumper 25% EC

COMMON
NAME
Propiconazole

24.

Nimrod 25% EC

Buprimate

25.

Odeon 82.5WDG

Chlorthalonil

26.

Ardent 50% SC

Kresoxim Methyl

27.

Orius 25% EW

Tebuconazole

CROP

Pests to be controlled

Wheat, Barley, vegetables,

ornamentals

Leaf and Stem rusts and other Fungal

diseases.

Fruits and vegetables

Powdery mildew

Coffee, Vegetables, fruits,

ornamentals

CBD, Botrytis/Grey Mold,

Downy mildew, Late blight

Vegetables, fruits and

ornamentals

Powdery Mildew, Fusarium, Eye-Spot,

Blotch, Rust, Septoria

Cereals, Vegetables, fruits,

ornamentals

RATE/HA
(Product in
LT or kg)

REMARKS

Manufacturer,
Origin

Systemic fungicide with

curative property

Irvita Plant
Protection, Israel

0.5 1lt/ha

Systemic action

200g/100lt
3kg (Coffee)

Non systemic with protective

and curative action

50ml/100lt

Pyrimidine fungicide
Non systemic with systemic
action Strobilurine fungicide
Systemic action with curative
and preventive property
Triazole fungicide

Makhteshim
Chemical Works
Ltd, Israel
Makhteshim
Chemical Works
Ltd, Israel
Makhteshim
Chemical Works
Ltd, Israel
Makhteshim
Chemical Works
Ltd, Israel

0.5lt.

50ml/100lt
Rusts, Alternaria, Cercospora, Fusarium,
Late blight, Powdery mildew

III. Herbicides
28.

Sugar cane, Coffee, Citrus

Glyfos 36 SL

Glyphosate

Glyhogan 48SL

Glyphosate

29.

Coffee, Citrus
Glyphogan T

31.

Glyphosate+
Terbuthylazine

Dicopur 720 SL
2,4-D

32.

3-4 lts
0.5-1.5lts

Specially effective on couch

grass known in Ethiopia

Perennial and Annual weeds

3-4 lts
0.5-1.5lts

Non selective with systemic

action. Specially effective on
couch grass known in
Ethiopia

Agan Chemical
Manufacturer Ltd,
Israel

Residual Herbicide in
Plantation Crops.

Agan Chemical
Manufacturer Ltd,
Israel

Effective for post emergency

control of annual and most
perennial broad-leaved weeds
in the crops listed well known
to Ethiopian Farmers.
Specially effective against
Gallium spp.

Nufarm S.A.S,
Austria

Coffee, Citrus

30.

Dicopur PP 600 SL

63

Mecoprop

Cheminova A/S,
Denmark

Perennial or Annual weeds

Perennial and Annual Grass &

Broadleaved weeds

Wheat, Barley Maize, Sorghum,

Grass & sugar cane, Coffee, Tea
& Citrus

Annual and perennial broadleaved weed.

Wheat, Barley, Teff

Broad-leaf weeds

2-3.5lts

1lt

2lts/ha

Nufarm S.A.S,
Austria

No.

TRADE NAME

33.

Desormone
Liquid 720 A.E

34.

35.

CROP

Pests to be controlled

RATE/HA
(Product in
LT or kg)

REMARKS

Quish Fordat

Alazine 350/200SE

37.
Atramet combi 50 SC

Granstar 75 DF

Nufarm S.A.S,
Austria

Nufarm S.A.S,
Austria

Maize and Sugar cane

Complex weeds(various
broad leaves and annual grasses)

Alachlor 35%
+
Atrazine 20%
Ametryne 250
g/l
+
Atrazine 250
g/l
Tribenuron
Methyl

4 5 lts

Sugar cane and pineapples

Various weed spp.

Wheat, Teff, Barley

5 10 lts.

Zhuhai Qiaoji
Overseas Trading
Co, China

Pre or early post emergence

Recommended to control
complex weeds in the crops
mentioned.
Selective pre and post
emergence herbicideto
control various weed spp.

Agan Chemical
Manufacturer Ltd,
Israel

15-20gm/ha
Broad leaf weeds

39.
Alanex 48EC

Manufacturer,
Origin

U-46 D Fluid

36.

38.

COMMON
NAME

Alachlor

Maize, cotton, groundnuts, sugar

cane, soybeans, Haricot beans,
Sesame. & Others

Complex weeds (annual grass and boad

leaf weeds)

3 4lt
1-2.25 (Maize
and Cotton)

Selective pre plant & pre

emergence herbicide to
control complex weeds.

Agan Chemical
Manufacturer Ltd,
Israel

Dupont de
Nemours S.A.S,
France
Agan Chemical
Manufacturer Ltd,
Israel

40.
Current 8 EC

Clodinafop
Propargyl

Wheat

Post emergence
Grass weeds

1 lit

United Phosphors
Ltd, India

IV. Storage Pests

41.
Quickphos

64

Aluminum
Phosphide

Stored product fumigation

Insect pests of stored products

2 tablets per
ton or
1tab. per m3

Fumigant

United Phosphors
Ltd, India

No.

TRADE NAME

42.

Ratol 2.5% bait

COMMON
NAME
Zinc phosphide

+ Registered Products
+ NA - Not Available

65

CROP
Field and store

Pests to be controlled
Rodent ( all rat spp)

RATE/HA
(Product in
LT or kg)
10kg/ha

REMARKS

Manufacturer,
Origin
United Phosphors
Ltd, India

SPRAYERS
Brand: Hardi & Cooper Pegler (CP-15, K-15)
Name of Sprayer

Capacity (lts)

Knapsack Sprayer

15 20

Motorized Knapsack Sprayer

12

Tractor Mounted Sprayer

400 - 600

Tractor Pulled or Trailed

1000 2500

Tractor Pulled or Trailed

1000- 3000

Self Propelled Sprayer

3000

Citrus & Wheel Barrow

1000- 3000

ULV Sprayer Micron ULVA

Vegetable Seeds
Tomato Roma VF
Onion Red Bombay
Cabbage Copenhagen
Swiss Chard Ford Hook Giant
Carrot Nantes
Beet Root Detroit

Case Study: Adami Tulu Pesticides Processing S.C.

In addition to the above organization, there is one organization that is currently producing and
supplying pesticides: Adami Tulu Persticides Processing S.C. It was established in 1987 EC with
a start-up capital of ETB 40,566,000. It is currently operating out of two offices with 375
temporary and permanent employees and a current capital of average ETB 50,000,000. Its
product line includes pesticides and mosquito nets. The full list of products is as follows:

Name

Description/ direction for use

I/ Plant Protection Products

1. Ethiosulfan (Endosulfan) 35% EC

Cotton for African Bollworm 2.1-2.5 lts/ha; for flea beetle 2.5 lts/ha; vegetables, oil crops,
pulses against bollworm and thrips 2.0-2.5

2. Ethiosulfan (Endosulfan) 25% ULV

Cotton African Bollworm 2.5-3 lts/ha Flea beetle 3 lts/ha. Calibrate spray air craft or ULV
sprayer before spray

3. Ethiolathion (Malathion) 50% EC

cereals, oil-crops, pulses, vegetables and fruits against armyworm, grass hopper, leaf
hopper, sucking insects, crickets, locusts 1-2 lts/ha. To spray storage surface area 0.002
lts/m.sq

4. Ethiozinon (Diazinon) 60% EC

cereals (maize, sorghum, wheat, barely, tef) pulse and vgetables aginst stock borer, soil
dwelling pests, shoot fly, cut worm, grass hoppers, army worm 1-2 lts/ha, citrus against
scale insects 200 ml/ 100 liter water (8-9 lt/ha), sugar cane black beetle 3 lt/ha and
termites 4/5 lt/ha.

5. Ethiothoate (Dimethoate) 40% EC

wheat, barley, pulses, vegetables and fruits spraying for thrips 1.5 lts/ha, aphids and other
sucking insects 1-2 lts/ha

6. Ethiothoate (Dimethoate) 40% ULV

For cotton spraying against thrips 1.5 lt/ha, aphids and other sucking insects 1-2 lts/ha.
Calibrate spray air craft or ULV sprayer before spray.

7. Ethiothrothion (Fenithrothion) 50% EC

cereals, pulses, and oilcrops against armyworm, locusts, grass hoppers crickets 1-2 lts/ha.
Coffee against leaf miner, Anthestia bug 1-2 lts/ha. Pulses, vegetables and fruits against
leaf miner, leaf worm bollwrms, aphids, thrips, aterpillar, leaf roller 1-2 lts/ha. tef against
red tef worm 1 lt/ha.

8. EThiolathion (Malathion) 5% Dust

cereals, pulses and oil crops against army worm, locusts, grass hoppers, crickets 1-2 lts/ha.
Coffee against leaf miner, Anthestia bug 1-2 lt/ha. Pulses, vegetables and fruits against
leaf miner, leaf worm, bollworms, Aphids, thrips, caterpillar, leaf roller, 1-2 lt/ha. tef
against red tef worm 1 lt/ha

9. EThiolathion (Malathion) 5% Dust

cereals, oil crops and pulses, against storage pests (Weevil, Moths etc...) mixing 25-50
gm/quintal.

10. Ethiodemethrin (Deltamethrin) 2.5% EC and WDP

Field crops:- stock borer, leaf miners, sorghum midge, grass hopper, cut worm, army
worm, cereal bug and boll worm0.75-1 liter/hectar
vegetables:- cutworm, thrips, white fly, aphids, leaf miners, plant bug, cabbage moths and
other sucking insects 0.5-1 liter/hectare
Flower farms:- Aphid, leaf miner, white fly and thrips 1 liter/hectare.
Citrus fruits:- fruit fly, aphids, scales insects, leaf miner and other sucking insects 20-50
ml/tree
Storage structure:- for disinfection of storage bins, bags, containers, pits and ware
houses1.5 ml diluted in 1 lt of water , for 5 m2 area.

11. Ethiozeb (Mancozeb) 80% WP

used as preventive and immediately at the diseases prvalence stage to control:-

# early and late blight, downy mildew, anthracnose, rust on tomato, potato carrot and
flower plants at the rate of 1.7-2.2 kg on 14 days intervals,
# downy mildew, purple blotch, on onion plants 2.2-3.5 on 7 days interval,

# downy mildew, alternaria anthracnose, leaf mold, on vegetables, cucurbits, peanuts, soya
bean plants 1.7-2.2 kg on 7-14 days interval,
# downy mildew, anthracnose, black spot, on citrus, mango, grapes plants 150 -200 gm on
15-17 days interval
# rust and blight on cereals, pulses 1.25-2 kg on 15-17 days interval,
Against broad leaf. Post emergencies selective and systematic broad leavedweed killer.
Tef, wheat, barley, oat 1 liter whole farm. Maize, sorghum 0.5-1 liter between rows. Sugar
cane 2-3 lts between rows. Coffee plant 2-3 lts between trees

II/ For animal Ecto parasite

12. Vetazion (Diazinon) 60% EC

68

it is used for treatment and control of lice, mange mite, keds in domestic animals except
chickens dilute 1;1000 ratio to spray or dip animals

13. Ethiomiraz (Amitiraz) 12.5% EC

it is used for treatment and control of sarcoptic mange and lice in pigs; ticks and mange
mite and ice in cattle; ticks, keds and lice in sheep and goats dilute 2 ml with one liter
water to spray or dip animals.

III/ for malaria vector control

14. LLTIN (Long lasting isecticides treated mosquito nets)

3 years protection from malaria and other vector born diseases without chemical
treatment. Avoid frequent wash, if required, wash gently and not bleaching. Avoid
exposure to sun.

15. Ethiodemetrin (Deltamethrin) 2.5% WDP

1 gram of the product (WDP) for 1 meter square area diluted in 40 ml water for indoor
spray

16. Ethiotrothion (Fenetrothion) 40% WP

is recommended for spray at a rate 5 gram/meter square are diluted in 40 ml water for
indoor spray against malaria vetor control (mosquito)

17. Ethiopoxure (Propoxure) 50% WP

It is recommended for spray at a dosage of 5 gram/ square meter diluted in 40 ml water for
indoor spray against malaria vector control (mosquito).

IV/ Products on pipe line

18. Ethiopyrifos (Chloropyrifos) 48% EC
19. Ethioconazole (Propiconzole) 25% EC
20. Ethiodemethrin (Deltamethrin) 0.6 ULV

The products have an estimated shelf life of 2 years. Factors that affect the shelf life include:
Appropriate air conditioning

69

Warehouse conditions

Quality of raw materials.

The organization uses three different types of packaging materials:

1. Cartoon that is supplied to them from a local company called Burayu.
2. Plastic Bottles are imported from Egypt and Israel.
Adami Tulu Persticides Processing S.C. has received certification from Quality Management
System (Ethiopia) while the Environmental Management System is still in progress.
4. Agriculture Machinery and Implements
The use of agriculture machinery has not yet been adopted into the agronomic practice of
Ethiopia. There are however a number of organizations that import and supply such machineries
such as tractors and agricultural implements such as planters, harvesters, and so on. A major
distributor of these machineries is Kaleb Service Farmers House PLC.
Kaleb Service Farmers House PLC is a private limited company legally established in 1993 EC
and registered under Ministry of Trade as an importer of agricultural and construction
machineries and implements. The organization imports these machineries and implements from
countries such as Germany, Brazil, South Africa, India and Japan. Currently the activities of the
organization has expanded to include export of agricultural products such as Sesame, Peanuts,
Pulses, Spices and other oil seeds to countries such as Europe, Japan and Israel. Furthermore, it
also supplies spare parts for the different machineries imported-agriculture and construction;
assembles corn sheller and seed drill in its workshop and provides installation, maintenance, and
training services for these machineries.
Product Lines:
The major activity of the organization is importing agricultural and construction machineries and
the export of Sesame. The full product line includes:

Machineries: Combine Harvester, Tractor, Balers, Excavator, Loader, Greader.

Generators

Irrigation System- sprinkler, drip

Implements: Disk Plough, Disc Harrow, Planter, Leveler, Fertilizer Spreader, Sprayers,
Knapsack Sprayers, and Agricultural Tiers.

70

The brands of the imported machineries include Claas and Amazone from Germany; Baldan and
Jacto from Brazil; Bell from South Africa; B.K.T. from India; Hitachi from Japan and ROME
from USA. The imported Generators are assembled and imported from Egypt while the brand
name of the Irrigation system is Jain and is imported from India.
The products that are currently being exported are:

Sesame- Japan, Middle East, Holland, Germany, Israel, Philistines.

Peanut- China,

Pulses- Japan- not that much. Searching for a market for china and Middle East. Spices

Coffee- Japan

Additionally, Kaleb also imports and supplies organic chemicals such as T-Stanes Nimbecide
and Green Miracle from India.
Sesame Growers
Understanding of the scattered and small-scale nature of the Ethiopian production system, the
role of aggregation in improving the agricultural marketing system is given due emphasis in the
national agricultural marketing strategy and this is sought to be achieved through Primary
Cooperatives and Cooperative Unions. Normally, Cooperative Unions get support for regional
cooperative promotion offices in the form of technical advice and provision of market
information.
While some Sesame farmers sell their product to different sesame collectors, others sell to the
same collectors. Those who sell to the same sesame collectors indicated that the reasons for
doing so are mainly due to the following: there are always the same buyers in the market longestablished relations exist with those buyers, the farmers trust them and they give them good
prices.

The reasons behind why farmers sell their sesame to different buyers are fact that they come at
different times, they sell to those who offer them better prices, it doesnt matter to which
collector they sell, and farmers are not in a position to choose buyers. These responses clearly
71

indicate that price is the most important factor influencing farmers selling behaviour, and this, in
turn, shapes their market relations and governance.

Cooperatives play an integral role in the Sesame Sector in Ethiopia. According to Cooperative
Societies Proclamation Number 147/1998, Cooperatives are defined as a society established by
individuals on voluntary basis to collectively solve their economic and social problems and to
democratically manage the same. In line with this definition the Cooperative Societies are
divided into:

Agricultural Cooperative Societies,

Housing Cooperative Societies,

Industrial and Artisans Producers Cooperative Societies,

Consumers Cooperative Societies,

Saving and Credit Cooperative Societies,

Fishery Cooperative Societies, and

Mining Cooperative Societies.

These different Cooperative societies are established in order to solve problems such as input
supplies shortage, finance problems, marketing problems and other problems faced by small
holder farmers, commercial farmers, and other investors located in different parts of the country.
As per the level of the problem faced, there are three different cooperative types.

Primary Cooperative will attend to the different needs of small holder and commercial farmers.
This will include supplying

inputs such as seeds, fertilizers and insecticide/pesticides/fungicides,

Selling harvested products, and

Provide loans.

According to the information provided by Federal Cooperative Agency, there are 43,255 Primary
Cooperatives operational in 2004 EC.

72

Table 9: Number of Primary Cooperatives located in the different parts of Ethiopia

Benishangul
Gumz

Diredawa

3,746

308

1,060

448

238

1,332

365

1,718,845

612,631

23,959

37,337

14,564

8,812

42,261

16,517

437,030

6,566,694

1,016,313

1,414,436

441,647

18,068

23,328

9,902

4,782

24,203

10,638

183,169

5,153,271

438,616

193,024

304,409

170,984

5,891

14,009

4,662

4,030

18,058

5,879

253,861

1,413,423

377,000,000

381,000,000

1,020,000,000

204,000,000

76,270,993

9,298,801

18,744,071

14,187,653

24,888,528

14,345,480

Parameters
Total
Number

Amhara

SNNPR

Oromiya

7,050

7,905

11,321

Members

2,445,401

1,209,337

Male

2,006,785

Female
Capital

Tigray

Harrar

Gambella

Somali

Afar

Addis Ababa

Total

9,482

43,255

786,029,226

Source: Federal Cooperative Agency

Case Study: Kafta-Humera Sesame Production and Sales Cooperative

Kafta-Humera Sesame Production and Sales Cooperative was established in 2012 GC with a start-up capital of ETB 979,500. The
capital was raised from the sale of shares at ETB 10,000/share & ETB 100 for registration fee. As a result of the commission earned
during operation, the current capital of the Cooperative is ETB 1,435,500. It currently has 95 investors as members.

73

2,925,764,752

No

Name of Member

Male

Mamay Beza Abreha

Tsegay Girmay Gidey

Teklay Kidanu Tesfay

Alem Gebrehanese Berhe

Belay Tadele Weldemichael

Gebrehiwot Hailu Teklegergis

Shimuye Mesele Gashe

Tesfay Belay Yifter

Guesh Asegahegn

10

Fisiha W/Aregay Hagos

11

Asmelash Abreha G/Medhin

12

Risqu Birara Lema

13

Kahsay Berhe Abreha

14

Alem G/tsadiq Weldemichael

15

Asmare Mesfin Tasew

16

Yohanese tega Abitew

17

Almitu Asres Yemataye

18

Teshager Aregay tekie

19

Abebe Lewte Getaw

20

Haile Shekole Beyene

21

G/Hiwot G/Medhin W/Michael

22

G/Silasie G/Tsadiq Genzbu

23

Zebib Abrha T/Medhin

24

Desta Berhe Welu

25

Zewdu Asgedom Haile

26

Asgedom Haile Desu

27

Mamay G/Mariam Mesfin

28

Hailemariam Gebeyehu Yigzaw

29

Mamu Serebe Lema

30

Gebehu Eshete Lema

31

Berhe Tekalign Weldesilasie

32

Enquayeneh Fantay Takele

33

Gultie Alemayehu Berhe

34

Tetemqe Tsegay Hagos

35

Kinfe Araya Meche

36

Yenehun Tadese Reda

74

Female

37

Tafere Alemayehu Berhe

38

Tiru Lewte Getaw

39

Fantaye Takele Eshetu

40

Yibrah Gebresilasie Yihdego

41

Amna Negash Mehamedzen

42

Berhje Weldu Gezahegn

43

Haji Nueayni Tahir Yasin

44

Salih Ebrahim Wubneh

45

Mulualem Gebretsadiq

46

Abreha Gebremedhin Kidane

47

Birhane Bahta Hagos

48

Tekeste Kifle Weldegebriel

49

Shimuye Gebru Weldemichael

50

Zenebe Belay Tafere

51

Gebremesqel Mengistu

52

Melese Reda Getaw

53

Birey Hiruy Gola

54

Gezahegn Alemayehu Berhe

55

Amare Tiruneh Lemlem

56

Asgedom Beyene warsew

57

Aziza Tahir Fitwi

58

Teweldemedhin Tadese Maru

59

Haregeweini Tela Weldetinsae

60

Gebremichael Gebrehiwot Abay

61

Kesete Bahta Hagos

62

Gebresilasie Gebru Desta

63

Azeb Kahsay Weldemariam

64

Weldetatyos Kidanu Hagos

65

Guesh Abreha Gebremedhin

66

Tsegay, Amsal & Rute P.L.C

67

Fantu Gezahegn Zeleqe

68

G/Medhin G/Hiwot G/Mariam

69

Fantahun Bahta Kassa

70

Ayenew Sereqebirhan G/Mariam

71

Abadi Teweldemedhin

72

Getachew Mamo Reda

73

Berihun Mekonen Belay

74

Tewelde Hailu Fotien

75

75

Dagnew Kebede Mola

76

Gebremesqel Kidane Yaynishet

77

Sharew Gebretinsae Abitew

78

Tesfu Bahire Kebedew

79

Tekie Bahta Debesu

80

Migibnesh Belay Gebresilasie

81

Beshir Mehamed Mekonen

82

Yibrah Kinfe Teklu

83

Abay Kinfe Teklu

84

Hailesilasie G/Giorgis Abreha

85

Belay Hayelom Baynesagn

86

G/Mesqel G/kidan Teklegergis

87

Asmelash G/Giorgis

88

Teklay Hagos Desta

89

Kebede Yihdego Gebru

90

G/her Abera Berhe

91

Weldu G/her Yihdego

92

Tsegay Asmelash Abunu

93

Tesfay Medhaniye G/her

94

Adisey G/yesus Alemshet

95

G/Libanos Mebrahtu

Number of Employees: 5

Inputs

Seed- Sesame; Hirhir type is the dominant seed

Fertilizer- UREA and DAP

Insecticide/Herbicides/Fungicide: Malathine, Carathe, Endosulphan, Manchozeb, &

Ridomal mainly supplied by office of Agriculture

Product
The members of the Cooperative have a total of 240,000 Hectar land while the yield is estimated
at 3 4 Quintal/Hectar. The Cooperative collects the Humera Type Sesame harvested by
members which is exported to destinations such as China and Holland at an estimated price of
USD 1,950/Tonne and has so far exported 2,190 Tonnes. The Cooperative Union is using the
76

Cleaning Machine owned by Tilahun Mesafint capacity being 5 Tonne/Hour and costs, on
average, ETB 24.00.

The office in Addis Ababa is solely specializes on Marketing. The shelf life of the Cleaned
Sesame is estimated at 1 year, which is affected by insects, dust, and moisture during the storage
time in a warehouse. The products are packed in PP bags (50KGs) that is supplied by Damot
Industrial PLC at a price of 7.48/Pcs.

Warehouse
The institution uses different warehouses located in different locations in Humera with capacity
ranging from 5,000 50,000 Quintal.

Transportation
The Cooperative employs the services of the transportation service providers. The type of trucks
usually used are Euro Trackers and N3 with capacity of 400 450 Quintal and 250 Quintal
respectively.

Cooperative Unions is an entity comprised of two or more Primary Cooperatives which is

established with the intension of solving problems that couldnt be solved at the level of Primary
Cooperatives. According to the information provided by Federal Cooperative Agency, there are
278 Cooperative Unions in Ethiopia.

77

Table 10: Number of Secondary Cooperatives/Cooperative Unions located in the different parts of Ethiopia
Paramete
rs
Total
Number
Members

Capital

78

Amhara

SNNPR

Oromiya

Tigray

Benishangul
Gumz

Diredaw
a

Harrar

Addis
Ababa

Total

47

44

113

44

14

13

278

1,549

1,102

3,938

734

115

59

339

7,843

3,000,00
0 23,631,740

1,373,602,6
29

178,624,65 124,999,51 975,689,81 57,488,82

2,143,00
7
6
8
8
8,025,070
0
Source: Federal Cooperative Agency

Case Study: Setit Humera Cooperative Union

Setit Humera Cooperatives Union was established in 1994 consisting of 4 Basic Cooperatives,
which amounted to 2,222 Small Scale Farmers, and a start-up capital of ETB 100,000. The
mission was to solve the major problems faced by the Basic Cooperatives and small scale
farmers with regard to issues related to input supply-seed, fertilizer, insecticide, and farming
machinery. The concern of the Cooperative Union also extended to includes providing financing
schemes to access these inputs especially relating to providing loans. Throughout the years, the
institution has also engaged in capacity building activities in the form of training and facilitation.

The major product of the Cooperative Union is Sesame. Setit Humera Cooperative Union is
currently operating out of an office in Humera with 8 employees and a capital of ETB
1,419,925.01. On average, a small holder farmer is expected to own a land with an area of 8
Hectar with a total estimated yield of 375,136.00 Quintal.

Currently, the Union has 18 Basic Cooperatives with 11,723 members in total (out of which 25%
are women), all of which are located in the Kafta Humera Woreda. Taking into consideration the
20 centers currently in existence in Humera, the Unions Basic Cooperatives are operating in an
almost

79

one-to-one

basis.

Membership Size
Male Female
S.N Name of Primary Cooperative
1 Emba-dirkutan Multipurpose
Cooperative
2 Hintset Multipurpose Cooperative

Total

238

32

270

193

59

252

126

48

174

305

66

371

610

401

793

268

493

96

3 Hadnet Multipurpose Cooperative

4 Wuhdet Multipurpose Cooperative
5 Mussie Multipurpose Cooperative
6 Miebale Multipurpose
Cooperative
7 Netsanet Multipurpose
Cooperative
8 Maebel Multipurpose Cooperative

1,528
9 Fana-Limat Multipurpose
Cooperative
10 Ruwasa Multipurpose Cooperative

652
160

11 Sengede Multipurpose
Cooperative
12 Lemlem Multipurpose
80

618

476
129
36
189

Specific
Location
Kebelle

Total Land
Holding of
Member HH
farmers
(Hectares)

Adi Goshu

2,160.00

Average
annual
Sesame
production
potential in
quintals
8,640.00

May-weyni

2,016.00

8,064.00

May-Keyih

1,392.00

5,568.00

Wuhdet

2,968.00

11,872.00

8,088.00

32,352.00

8,488.00

33,952.00

4,712.00

18,848.00

16,032.00

64,128.00

6,248.00

24,992.00

1,568.00

6,272.00

6,456.00

25,824.00

6,456.00

25,824.00

Hagere1,011 Selam
Adebay
1,061
Rawyan
589
Bereket
2,004
May-Kadra
781
Ruwassa
196
Erob
807
Tirkan

Cooperative
13 Maernet Multipurpose
Cooperative
14 Shewit Multipurpose Cooperative

584
690
595

15 Aditsetser Multipurpose
Cooperative
16 Fana Multipurpose Cooperative

595
165

223
183
232
232
82

807

42
98

Number of Employees: 8

81

Baeker

6,616.00

26,464.00

Adi-Tsetser

6,616.00

26,464.00

Shiglil

1,976.00

7,904.00

Aidola

1,120.00

4,480.00

Adi-Hirdi

3,888.00

15,552.00

93,784.00

375,136.00

827
247
140
486

Total
8,831 2,892

27,936.00

827

18 Selam Multipurpose Cooperative

388

6,984.00

873

17 Aidola Multipurpose Cooperative

98

Humer-01

11,723

Inputs

Seed: Sesame and Sorghum

Pesticide: Herbicides and pesticides

Fertilizer: DAP and Urea

Products
The Cooperative Unions major product is Sesame although its full product line includes
Sorghum, fertilizers, improved seeds, merchandises, and so on. Sesame harvested by the
members has two destinations: ECX or export. The Cooperative Union exports the Sesame after
cleaning it using its own cleaning machine imported from Denmark: gravity separator. It exports
about 1,200 1,300 Ton per year to countries such as China, Turkey, Israel, and Jordan. Each
country has a different level of cleaned sesame but the Cleaning machine can go up to 99.5%.

Certification
The Cooperative Union by itself is not certified although 2 member Primary Cooperatives have
Organic Certificates.

Warehouse

No
1

82

Location of Warehouse
Humera

Humera

Area (M )
10,000

Capacity
(Quintal)
5000.00

50,000

Remark
Operational
65% Complete. Expected
to be completed in June
2013.

There are two types of Cooperative Federations that are established in Ethiopia: Saving and
Credit Cooperatives and Multipurpose Cooperatives. These Cooperatives are established in order
to provide capacity building, training and marketing services. There are only three Cooperative
Federations that are operational in Ethiopia and they are located in Oromiya, Tigray and
Southern Nations, Nationalities and Peoples Representative (SNNPR). With the exception of the
SNNPR, the Cooperative Federations in the other regions have Cooperative Unions as members.
The Cooperative Federation in SNNPR includes Primary Cooperatives as well.

The structure cooperative federation is still a point of argument among two theories. One of these
theories states that there should only be one Cooperative Federation that is to be supported by the
Federal Cooperative Agency. The other states that Cooperative Federations should be established
at regional level and supported by the Regional Cooperative Agencies. Theoretically, they are
the Cooperative Federations are to be structured under a League although it has not been
established yet.

Case Study: Tigray Multi Purpose Marketing Federation

Tigray Multi Purpose Marketing Federation LTD Cooperative (TMF) was established on Tikimit
22, 2002 EC, in accordance with Cooperative Proclamation 145/2000 with a capital of ETB 7.5
Million incorporating 29 Cooperative Unions and a Primary Cooperative. It was established with
the following objectives:

To involve in those activities, which the primary cooperatives and unions cannot manage
independently;

To improve the bargaining power of members and provide advocacy services;

To increase the market share of the union and member cooperatives;

To promote education and training for members, employees and community;

To involve in natural resource development and management;

To assist members address their socio-economic challenges;

Provide technological expertise and training to the farmers, employees and communities
to transform their economic welfare and promote modern agricultural practices;

Facilitate a competitive market for all products, both inputs and crop sales and make the
primary cooperatives the prime beneficiaries; and

83

To create employment opportunity to youth and women.

It is currently engaged in import, export, and merchandising business. The products and services
included in this parameter are:

Export: Sesame Seeds, Coffee, Sorghum, and Natural gum

Livestock rearing

Agricultural input supply such as Seeds, Pesticides, Insecticides, Herbicides, Fertilizers

Arranging credit facilities to members

Provision of storage facility for its members free of charge

Construction materials

Training and business development services to member farmer organizations

Assistance in marketing for the harvested products in the local and international market

Tigray Multipurpose Marketing Federation LTD Cooperative currently has 45 members: 31

Cooperative Unions, 1 Primary Cooperative, and 13 Small Holder farmers.

84

Table 11: Members of the Tigray Multi-purpose Marketing Federation LTD Cooperative

Number of
Members

No
1

Name of Institution

No. of
Primary
Cooperatives

Male

Female

Dansha Awera Cooperative Union

8 6,647

1,676

2 Lemlem Welqayet Cooperative Union

5 9,110

2,216

18 8,831

2,892

3 Setit Hummera Cooperative Union

4 Tekeze Cooperative Union

4 3,262

779

5 Seyemti Adyabo Cooperative Union

17 6,181

1,330

6 Feleg Cooperative Union

17 8,168

710

7 Medebay Zena Cooperative Union

14 6,988

1,486

8 Shewit Cooperative Union

12 6,466

915

9 Selam Cooperative Union

12 7,601

1,470

10 Hawelti Cooperative Union

13 8,716

1,971

11 Jira Cooperative Union

17 6,913

1,961

12 Geter Adwa Cooperative Union

15 10,244

2,827

13 Ahferom Cooperative Union

22 10,217

3,432

85

Size of
Farm
(Hectar)

93,784

Quantity
Supplied
Address
Type in recent
of
Harvest Telephone
Sesame (Quintal) Number
+251-344-36Whitish 10,000
0303
+251-914-77Whitish 5,000
4667
+251-344-48Whitish
0244
+251-345-50Whitish 1,000
0098
+251-914-720239
+251-346-61Whitish 250
0280
+251-347-760293
+251-344-442190
+251-344-680313
+251-347-751874
+251-345-570129
+251-347-712292
+251-344-490666

14 Werie Cooperative Union

20 10,836

2,063

15 Mereb Cooperative Union

6 7,599

2,075

16 Debre Ansa Cooperative Union

19 10,157

3,089

17 Aberglele Cooperative Union

13 7,073

1,614

18 Welwalo Cooperative Union

11 10,005

3,824

19 Temesgen Cooperative Union

8 8,478

4,215

20 Semret Cooperative Union

9 13,556

7,088

21 Atsegebet Cooperative Union

10 8,980

5,690

10 9,980

2,364

23 Enderta Cooperative Union

17 16,896

3,280

24 Adi Gudem Cooperative Union

11 16,593

6,034

25 Sahrti Samre Cooperative Union

17 10,562

3,486

26 Alaje Cooperative Union

10 11,401

4,166

27 Bokera Cooperative Union

11 7,156

3,670

+251-347-752585
+251-345-550156
Whitish 150

22 Hagere Selam Cooperative Union

28 Lemlem Raya Cooperative Union

29 Hashenge Cooperative Union
86

9 14,523

6,561

16 17,166

6,144

Whitish 500

+251-344-46-995
+251-344-220192
+251-914-104532
+251-345-590151
+251-344-470298
+251-344-410285
+251-914-748719, +251-37339-0352
+251-344-401382
+251-344-370045
+251-345-540088
+251-344-410271
+251-348-770055
+251-346-640020
+251-345-510367

30 Shewit Alamata Cooperative Union

Meadi Kelete Awlaelo Cooperative
31 Union
32 Nihbi Primary Cooperative

9 8,875

3,462

15 10,015

3,731

50

+251-347-740134
+251-344-480244

15

33 Desta Kidane

450

Whitish 2,200

34 Mulualem G/Tsadiq

500

Whitish 800

35 Ali Mehamed Ferah

36 Shewit Alemayoh

1,200

Whitish 2,480
Whitish

37 Mengestu Hadgu

700

Whitish 1,400

38 Tsegay W/Hiorges

300

Whitish

39 Tewelde Haile
40 Shimye Gebru

1,263

Whitish 3,000
Whitish

41 Berhe Weldu

460

Whitish

42 Fisseha Gebru

100

Whitish

43 Temalew Werqu

530

Whitish

44 Kinfe Araya

525

Whitish 300

45 G/Wahid Eskeya

200

Whitish 400

Source: TMF, FCA

87

Inputs
The institution is not directly engaged in the farming/harvesting process but the members are
currently using the following inputs:

Insecticide, pesticides, and herbicidesHerbicide brand 2-4D. Last years consumption in the major sesame cultivating Woredas
is 30,000 Ltrs.

Fertilizer- The fertilizer that is used during the cultivation is DAP and UREA. The total
quantity of the fertilizer used in the last harvest season was 180,000 Quintal.

There are a wide range of farming technologies that are being used, which includes
tractors and traditional methods of cultivation.

Packaging- The organization uses PP Bag that is supplied by Flexible Factory, etc

Processing
Tigray Multi-Purpose Marketing Federation LTD Cooperative has 3 Cleaning Machines (2 in
Humera and 1 in Densha) with a capacity of 60 Quintal per hour/machine and can clean up to
99.8%. The total cost of the machinery is estimated at ETB 1,200,000. The Cleaned Sesame is
exported to destinations such as China, Japan, and Israel and has a shelf life of a year. The
factors that affect shelf life are

Temperature

Pests

Warehouse handling

The institution believes that factors such as color and oil content have made the product unique.

Certification
The organization has no international certification to date.

Transportation
TMF has 4 Euro Tracker trucks that are used for transportation of inputs and the cleaned sesame
but it also additionally uses the transportation services provided by members trucks.

Warehouse

No Location of Warehouse
1 Hummera
2 Mekelle

Area (M2)
10,000
4,500

Capacity
(Quintal)
100,000
80,000

Sesame Processors
1. Sesame Seed Exporters
Case Study: Belayneh Kindie Import and Export
Belayneh Kindie Import and Export is a private limited company legally established in 2005
(GC), and registered under Ministry of Trade as an exporting company with an initial capital of
ETB 3 million. The transport enterprise, once a member of the organization, was established as
Gerelta Business Private Limited Company with 6 heavy duty trucks in 2008 (GC) in order to
provide services such as custom clearing, representing importers and exporters at custom, and
port handling for import and export. The organization is engaged in a wide variety of business
activities such as import, export, and service provision. On average the organization exports
around 300,000 Quintals of cleaned Sesame per year to destinations such as China, Middle East,
Israel, and Europe. The buyers in these countries further process it to the level of Tahini, Halawa,
Cake, etc. It has plans of expanding its product line to include Hulled Sesame and export to
markets in America and Europe.
Product Lines:
1. Export: Whitish Humera and Wellega Sesame, Black shinny type Niger Seed, Pea beans,
Chick peas, and Lentils.
2. Services: Transport and Custom Clearance.
3. Import: Palm Oil, Steel bar, Tire, Paper, Roof stone
4. Affiliated organizations (other organizations owned by the proprietor): Ethiopia
Hotel, Ras Hotel,

89

Office: Belayneh Kindie Import and Export has a head office in Addis Ababa while there are
branch offices in Humera, Metema, Mizan Teferi, Gelan, and Tatek that are actively working on
Sesame. Other affiliated organizations are located in Addis Ababa, Nazereth and Bahirdar.
Number of Farms: The organization owns a farm in Mizan Teferi with an area of 3,000 hectars
that the organization plans on cultivating Coffee and Sesame. The expected harvest of Sesame
from this land is not sufficient for the orders placed on Belayneh Kindie Import and Export and
thus the purchase from ECX will continue.
Warehouse:
The organization has five warehouses located in different parts of Ethiopia. While four are fully
operational, Tatek warehouse is still under construction.
No
Location of the Warehouse
1
Gelan
2
Tatek
3
Burayo
4
Metema
5 Humera

Capacity (Quintal)
150,000 200,000
>= 150,000 200,000
100,000 150,000
20,000
100,000

Machineries:
There are six cleaning machines (three imported and three locally supplied) that are being used
in the export of Sesame Seed that is cleaned at 99%:
No
1
2
3
4

Location
Gelan
Burayo
Metema
Humera

Quantity
1
1
1
3

Purpose
Cleaning
Cleaning
Cleaning
Cleaning

Capacity

Origin

350 -360
Tonnes per
Hour

Transportation:
The organization currently owns 28 Iveco truckers with a loading capacity of 40 Tons each
which are transporting export cargo from Ethiopia to Djibouti port and Import cargo from
Djibouti port to our warehouses.
90

No
1

Type of Vehicle
Iveco Truck

Quantity
28

Capacity
40 Tons

Input Types:
Although the organization has not started cultivation on the land located at Mizan Teferi, it is not
planning on Fertilizer in order to maintain the organic character of the Harvest. Currently, the
only input it is using is the White Humera and Wollega Sesame Seed (usually Grade 1, 2) that is
currently being traded at ECX market.

Marketing
The value-add level of Sesame that is supplied by the organization is still at Cleaned Sesame
level. It is specified that the origin of the product is Ethiopia on the packaging, PP bag, which is
supplied by Damot Industrial and Commercial PLC. They are currently supplying their products
to both brokers and directly to factories located in the export destinations.

2. Value Addition
There are only three organizations that are currently engaged in value addition of Sesame: Selet
Hulling PLC, Dipasa Agro PLC, and Ambasel Trading House PLC
Case Study: Selet Hulling PLC
Selet Hulling PLC was legally established in 2007 GC as a Joint Venture between Kaleb Service
Farmers House PLC and Dutch based holding company called The Organic Cooperation (TOC)
B.V. TOC, owned by Sun Opta Inc., specializes in international sourcing and supply of certified
organic ingredients for the world food and bakery industry (which includes grains; seeds; pulses;
dried fruits and nuts; cocoa and coffee; sugar and sweeteners; juices, purees and concentrates;
frozen fruits and vegetables, oils and fats, and animal feed) and draws its input from countries
such as Ethiopia, Serbia, China, Thailand, Mexico, Ghana, Bulgaria, Philippines, Vietnam, etc.
Selet Hulling was established with the intention of producing organic hulled sesame seeds in a
factory that employs the dry/mechanic hulling method of processing and has a capacity of 1,500
1,700 Kg per hour.
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The major input for the factory is Humera type Sesame Seed/t-85 variety which is collected
from two sources: the organizations own farm and out-grower scheme. The organization has a
300ha farm on which sesame, cotton, soya bean, sunflower and mung beans are grown. Since the
harvest from this farm is not sufficient for the operation capacity that has been planned for the
factory, the organization has engaged in an out-grower scheme. In this arrangement, Selet
Hulling will be responsible to provide the necessary input for the farmers, through pre-finance,
and will purchase the harvest at the current market price of the product at the time of harvest.
There are 2 Cooperative Unions, namely Fana and Shewit Cooperative Unions, that are involved
in this scheme including 2,000 small holder farmers.

Name of Cooperative Union

Basic
Cooperatives

Male

Female Region

Shewit

11 6,542

Fana

13 17,338 1,432
Total

1,022

Tigray
Amhara

26,334

The factory rests on a 6,000 square meter plot of land 20KMs outside of Addis Ababa. Its
construction was started in November, 2007. The factory consists of sesame cleaning line,
sesame dry-hulling line and two warehouses (one for raw materials and another for finished
products). The cleaning line machineries were imported from Denmark while the dry-hulling line
was purchased from Spain, USA, Netherlands, and China. The reason behind the preference of
dry-hulling method is because of the belief that it is more advantageous over the traditional wet
hulling method as a result of lower water consumption and less impact on the environment. The
factory is currently using rain water that has been filtered in multiple steps and treated in UV.
Certifications:

ISO 22.000:2005 (DQS) Certified

Fully Organic- Control Union Certifications

Complies fully with organic rules and regulations such as:- EEC 834/2007; 889/2008
(EU), the NOP (US) and JAS (Japan)

92

Works according to international quality systems like HACCP and ISO 22000

Case Study: Dipasa Agro PLC

Dipasa Agro PLC was legally established in April 30, 2008 as a JV between Dipasa Europe B.V,
Netherlands and Agro Prom International PLC, Ethiopia. Both companies had experience in
cultivation, processing, and exporting Sesame before the establishment of the JV.
The company is currently engaged in Cleaning, and Hulling and Roasting of Sesame. The
outputs are completely exported. The export destinations include Far East, Middle East, North
America and European Countries. The processing plant is located in Burayo, Oromia. The
machineries are imported from America and Belgium. On average these machineries have the
capacity to produce 20 Tonne of 99.99% Hulled Sesame per day.
The input for this processing plant is supplied from its own farm and three Primary Cooperatives
through the Out grower scheme. The farm is located in Humera. On the other hand, the Outgrower Scheme was begun in March, 2012 with three Primary Cooperatives with:1. 1,700 Small Holder Farmers
2. 1,600 Small Holder Farmers
3. 1,400 Small Holder Farmers
Product Line:
Dipasa Agro PLC is currently engaged in exporting

Cleaned natural sesame seeds

Mechanically hulled sesame seeds, and

Hulled and roasted sesame seeds

The detailed product description is as follows:

1. Physical Characteristics
Color of seed

Humera whitish

Taste/smell

Typical sesame taste/smell

Appearance

Oval

FFA

Max 1.5%

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Humidity

Max 5%

Purity

Min 99.95%

2. Microbiology
Total plate count

<300,000 cfu/g

Yeast

<5,000 cfu/g

Mould

<5,000 cfu/g

Enterobacteriaceae

<10,000 cfu/g

Coliforms

<5,000 cfu/g

Salmonella

Neg/25g

Escherichia coli

<10 cfu/g

Staphylococcus aureus

<50 cfu/g

Bacillus cereus

<50 cfu/g

Sulphite reducing anaerobes

<50 cfu/g

Clostridium perfringens

<50 cfu/g

Faecal streptococci

<50 cfu/g

Campylobacter

<10 cfu/g

Listeria monocytogenes

<10 cfu/g

3. Pesticides
BHC

Nil/g

DDT

Nil/g

ALDRIN

Nil/g

DETECTION LIMIT

0.01 PPM

These products have a shelf life of 18 months. The products are supplied with the following
packaging-

94

25 kg net paper bag

50 lbs net paper bag

50 kg pp bag for cleaned natural sesame seed

Stabilized big bags 500 750 kg net

Certifications:

Organic Certification from BCS OKO-GARANTIE the German organic certifier

Warehouse:
The organization has two different types of warehouses at the location of the factory located
20KMS out of Addis Ababa.
Case Study: Ambasel Trading House PLC
Ambasel Trading House PLC is a private limited company legally established in November,
2003 under the commercial law. It had began its processing in partnership with an Israel-based
organization known as Sheba. The organization is engaged in various aspects of international
trade such as import, export, whole sale distribution and business representation.
Ambasel Trading House PLC owns a factory located in Gonder that is housing the cleaning,
hulling and tahini processing machineries that were imported from Turkey. The hulling machine
has a size sorter and not a color sorter. In times that this machinery experience mechanical
malfunction, the spare parts are being currently imported from Spain while technicians are being
invited from all over the world-a very expensive affair. By using these machineries, the
organization is currently engaged in export of raw whitish sesame seed (Humera and Metema);
Hulled and Pealed Sesame Seed; Crushed Sesame (by-product of hulling) and Tahini to
destinations such as USA, Japan, Israel, Turkey, Dubai and Polland. Additionally, Ambasel
Trading House is providing cleaning services for cooperative and small holders in the region.
This factory has the capacity of supplying 3,000 Quintal of Hulled Sesame and 760 Quintal of
Tahini over a period of six months.
Product Lines:
The full product line of the organization includes:
1. Export
o Coffee;
o Oilseeds (Sesame Seeds, Niger Seeds, Cotton Seeds);
95

o Pulses (Haricot Beans, Lentils);

o Gum Olbanium;
o Spices (Ginger); and
o Other agricultural products.
2. Import
o Agro-chemicals (Herbicides, Pesticides and Animal Medicine)
o Construction Materials: Reinforcement iron bars; Pipes and fittings; Iron sheets,
and so on.
o Business and Technology: Cash Register Machine
o Automotive Parts: Tyres, and so on
3. Wholesale Distribution
o All imported products
o Domestically produced industrial goods such as Matador Addis tyres, Sugar,
Textiles, Blankets, Stationary Items, Agricultural Chemicals, and so on.
4. Business Representation
o Spanish sickles, matches (La Pajarita)
o Irrigation Machinery and Equipments (Irripars Reel Machine)
o Tyres (Addis Tyre Company)
o England matches and tools (Martindale)
o Matabi Chemical Sprayers (Goizper)
o Water pump and power generators (Yanching International)
Ambasel Trading House PLC is a registered member of:

Ethiopian Oil Seed and Pulses Export Association;

Addis Ababa Chamber of Commerce and Sectoral Associations;

Ethiopian Chamber of Commerce; and

Ethiopian Commodity Exchange.

Office:
The organization has a central office in Addis Ababa but has several branch offices in Bahirdar,
Gondar, Debremarkos, Dessie and Debreberhan.
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Certifications:
Certified by ISOQAR (UK)

ISO 22000:2005 (Food Safety Management System)

ISO 9001:2008 (Quality Management System)

Food and Drug Administration (FDA) Registered- USA

Warehouse:
The organization has three warehouses with a capacity of 45,000 tons.
Marketing
The Sesame products that are being exported (cleaned sesame products, hulled sesame, and
Tahini) are still being represented under the brand name of Sheba. The organization is
considering changing the brand name to Ambasel, since it already has a strong goodwill in Israel.
In addition to the international market, the organization is currently considering supplying Tahini
to the local market.

The products are currently being exported in PP Bags and Barrels that are both imported and
purchased from local suppliers. The organization would like to use Vacuum bags but they are not
available in the market. The local suppliers of PP Bags are Damot and Inova.

The products that are being supplied by Ambasel reach the international market through two
tunnels: brokers and directly by the organization.
Institutions
Case Study: Ethiopian Commodity Exchange (ECX)
Ethiopia Commodity Exchange (ECX) was established as an autonomous public institution of
the Federal Government4 with an authorized capital of ETB 250 million. Its mission statement
is to connect all buyers and sellers in an efficient, reliable and transparent market by harnessing
innovation and technology, and based on continuous learning, fairness and commitment to
excellence. It is currently the trading ground for exchange commodities such as Coffee, Sesame,
4

Proclamation 550/2007

97

Haricot Beans, Wheat and Maize via members. There are two types of members: Intermediary
and Trading Members. According to Proclamation No. 550/2007 members are engaged in
trading of exchange commodities on their own account or for the account of others. There are
currently 325 members, out of which 24 are Trading/Full Members.
The ECX gives a number of advantages to exporters such as warehousing, legally binding
contracts, prompt payment system and grading services. But not all the actors along the value
chain are pleased by the new system due to lack of awareness and misconception of the new
system. Buyers had different issues about the ECX such as credibility, grading, handling and
storage practices and lack of traceability.
ECX started trading Sesame in 2009. The sesame that has been collected by the Intermediary and
Trading Members has to be primarily be graded by Regional Agriculture Bureaus. The grading
that is done at this level is basic and as a result of which a Discharge Sheet will be issued. This
document includes details such as the origin of the product-in this case Sesame- and the amount
of the Consignment5.
Upon arrival at the ECX Warehouse, the driver ought to be able to present the Discharge Sheet
for the Data Clerks that are located near the gate. After checking the validity of the Discharge
Sheet, they will encode the data on the Discharge Sheet, assign ID number (referred to as Sample
Number) and issue an Elecronic Sampling Ticket. A printed version of this ticket with the afore
mentioned Sample Number and date, plate number of the truck and the exact number of plumps
that have been used by Regional Agriculture bureaus to secure the consignement will be
checked for any errors or discrepancy. Other details of the consignment that can visually be
observed will be left open to be market by the warehouse technician. This technician will make a
preliminary assessment of the product, in this case Sesame, in a restricted area on the premises
but not in the Warehouse. He/She will check to ensure:
1. Uniformity of the capacity of the pp bags (100kg) each.
2. That there is no significant difference in the variety in all the pp bags;
3. There is no adultration being committed

Consignment, in this context, refers to a truck (no model specification) containing the same product. This is the
term that is customarily used.

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4. That there is no visible presence of insects, chemicals (such as petrol), mold/fungus.

Sample- amounting to 4kg -will be taken from each Consignment from three different points
within one PP Bag. This sample and the Sampling Ticket will be transported by runners to the
Coding Room-where an unrelated ID will be allocated to the sample. By means of different
runners the sample and the new codes will be delivered to the Laboratory. These two coding
systems are employed in order to maintain the anonymity of the depositor and avoiding bais.

The first step taken by the Laboratory Technicians is to physically evaluate the sample and
evaluate the color, ordor, pest presence, mold presence, and presence of moisture. The sample is
99

later divided into two- 2kg to be filed in case of complaints and 2kg for further analysis- by
means of the Boerner Divider.

The Sample that is selected for further processing will undergo the grading process. The grading
process will rely heavily on foreign matter and color. The calculations being:
Weight of foreign matter
Total weight of the Sample

x 100%= Foreign Matter Percentage

Weight of Predominated Color

Total weight of the Sample

x 100% = Contrasting Color Percentage

The predominated color in a sample of Seame is the color that is being dominated by the
Contrasting color. For instance- when physically sorting the color of the Sesame Sample, if there
are more White Sesame seeds rather than Redish. Then the predominated color is Red while the
contrasting color is White.
After such analysis, the following form will be filled out and the form will be returned to the
coding room.

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Three copies of the Sesame Grading Sheet will be issued. One copy will remain with the
laboratory, while the second copy will be given to customer and the third copy will be
transported to warehouse. It is only after the completion of the grading system and issue of the
grading sheet that the Consignment is accepted into the ECX Warehouse. Until such time, the
Sesame will remain as it arrived.
If the customer believes that the grading was unfair, he/she can present their complaints to the
organization and ECX will use the spare 2kg sample that was put aside to re-run the grading test
but doesnt use the entire reserve sample. If the customer is still not satisfied with the result, then
the Sesame will be transported to Ethiopian Confirmity Assessment Enterprise (ECAE). The
customer is required to make a deposit-at this time- which will be used to cover the expenses of
the test if the ECX grading is proven to be correct. Otherwise, ECX will have to cover the
expense and reissue the grading sheet.
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Upon deposit at the warehouse, a ticket will be issued by the warehouse custodian. The Sesame
deposited is arranged by stacks based on its type and grade. After the successful deposit of the
Sesame, the intermediary members will be able to trade the Sesame on the date their suppliers
inform them to. Growers/suppliers of Sesame have the ability to choose the quantity and the
price at which they choose to sell their product. Thus the price varies from time to time. In order
to get a clearer picture of the price changes, please refer to the table below.
Table 12: Average Price of the Sesame varieties that have high activity from January, 2011
May, 2013
Month

WHGS2

WHGS3

WHGS4

WWSS2

WWSS3

WWSS4

WWSS5

1,988

2,006

2,003

1,976

1,824

1,870

1,880

1,858

1,781

1,609

January

1,985

1,972

1,967

1,943

1,791

1,873

1,871

1,848

1,755

1,594

February

1,992

1,984

1,980

1,968

1,848

1,897

1,879

1,853

1,828

1,760

March

1,944

1,944

1,937

1,919

1,797

1,847

1,842

1,824

1,802

1,660

April

2,000

1,991

1,986

1,983

1,826

1,900

1,885

1,854

1,806

1,675

May

2,035

2,057

2,048

2,026

1,906

1,980

1,988

1,965

1,942

1,748

June

2,110

2,076

2,071

2,064

1,908

2,011

2,004

1,990

1,949

1,800

2,071

2,066

2,067

1,901

2,012

1,974

1,964

1,956

1,880

2,107

2,107

2,091

1,923

1,983

1,996

1,959

1,871

September

2,189

2,194

2,198

1,917

2,087

2,070

2,054

2,048

October

2,132

2,152

2,223

1,905

1,868

1,894

1,876

1,837

2011

WHGS1

July
August

2,110

WHGSUG

WWSSUG

November

1,975

1,962

1,945

1,926

1,738

1,800

1,789

1,749

1,666

1,580

December

1,936

1,908

1,907

1,879

1,759

1,726

1,737

1,703

1,554

1,000

2,292

2,262

2,263

2,184

2,083

2,010

2,107

2,089

2,035

1,954

January

1,921

1,914

1,915

1,883

1,776

1,725

1,732

1,703

1,619

1,372

February

1,939

1,924

1,925

1,881

1,784

1,692

1,717

1,683

1,619

1,428

March

2,009

1,986

1,988

1,937

1,822

1,810

1,840

1,812

1,761

1,480

2,242

2,237

2,175

2,018

2,093

2,119

2,108

2,069

1,901

2012

April
May

2,348

2,382

2,380

2,327

2,111

2,231

2,222

2,191

2,134

1,955

June

2,383

2,389

2,392

2,335

2,120

2,171

2,205

2,193

2,159

1,975

July

2,585

2,504

2,503

2,422

2,165

2,292

2,324

2,311

2,256

2,119

August

2,708

2,685

2,667

2,661

2,213

2,635

2,444

2,440

2,346

2,238

September

2,688

2,698

2,689

2,693

2,270

2,327

2,343

2,358

1,913

October

2,620

2,434

2,388

2,148

2,000

2,281

2,305

2,217

2,122

1,955

November

2,497

2,332

2,321

2,253

2,129

2,302

2,273

2,248

2,164

2,017

December

2,648

2,648

2,647

2,589

2,480

2,487

2,489

2,469

2,413

2,334

3,435

3,394

3,390

3,325

3,195

3,166

3,181

3,186

3,142

3,006

January

2,900

3,137

3,141

3,050

2,890

3,021

2,952

2,928

2,877

2,634

February

3,420

3,393

3,389

3,337

3,178

3,158

3,173

3,140

3,055

2,890

March

3,453

3,469

3,460

3,416

3,321

3,365

3,348

3,350

3,293

3,165

April

3,600

3,546

3,544

3,485

3,443

3,356

3,371

3,376

3,360

3,265

May

3,615

3,562

3,558

3,498

3,456

3,387

3,412

3,448

3,290

2013

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Business Environment
1. Access to Finance
Access to adequate finance is a key driver of progress in a given sector. In Ethiopia finance is one of
the major constraints that limit the development of agricultural sector in general and sesame sub
sector in particular. Sesame Farmers and businesses are challenged by efficient access to finance.
Smallholder sesame farmers and cooperatives often cite challenges obtaining necessary credit and
financing as contributing factors to low yields and poor harvests. To purchase the proper sesame
seeds, producers require up-front capital; without this capital, farmers are often forced to re-use old
seeds or miss the proper planting season while they scramble to get the capital they require.
Financing labor costs is also too high for farmers during harvesting and this impose a serious
problem on farmers total production and meting contract agreements regarding output.
In addition finance is also a key challenge for farmers to enter into value addition activities and hold
processing machineries and warehousing. The Government of Ethiopia and several other NGOs are
attempting and implementing key interventions that will help mitigate these financial constraints and
its impact The ATA is already engaging with sesame cooperatives, working to improve capacity and
strengthen access to finance, markets, and modern farming practices. The ATA is also working on
establishing a partnership with other donors to supply smallholder farmers with necessary
agricultural machinery, including the tractors and harvesting machinery necessary for efficient
sesame production. By so doing the ATA reduces the negative impact of financial constraints
(USAID, 2012).
Donor programs such as AGP-AMD (Agricultural Growth Program Agricultural Marketing
Development Project) run by ACDI/VOCA (Agricultural Cooperative Development International /
Volunteers in Overseas Cooperative Assistance) focus explicitly on the sesame value chain, training
and building capacity of smallholder farmers. Credit unions such as WOCCU (World Council of
Credit Unions) bring access to credit and savings programs to rural smallholders to assist with
advance purchase of inputs and other production requirements (IBID).

For sesame processors and exporters the major source of external finance are banks (private and/or
state owned). Agriculture has been identified as a priority sector for support by the Development

Bank of Ethiopia, which intends to provide 5 billion birr ($290M) in loans for capital expenditures
over the next five years. Analysis is being conducted by donors and government agencies to identify
mechanisms to simplify the process for obtaining loans (IBID).
Getting Credit; procedures, requirements and incentives
Two types of frameworks can facilitate access to credit and improve its allocation: credit information
systems and the legal rights of borrowers and lenders in collateral and bankruptcy laws. Credit
information systems enable lenders to view a potential borrowers financial history (positive or
negative) -valuable information to consider when assessing risk. And they permit borrowers to
establish a good credit history that will allow easier access to credit. Sound collateral laws enable
businesses to use their assets, especially movable property, as security to generate capital. In most
cases strong creditors rights have been associated with higher ratios of private sector credit to GDP.

Based on the sharing of credit information and legal rights of borrowers World Bank asses the ease
of getting credit in Ethiopia and the country stands at 104 in the ranking of 185 economies. This
indicates that the credit information system and collateral and bankruptcy laws in Ethiopia are not
well systematized to support lending and borrowing at least on the basis of world standard. Absence
of effective legal rights of lenders and borrowers under collateral and bankruptcy laws, and limited
scope, coverage and accessibility of credit information, strongly limit entrepreneurs access to credit.
In recent years, however, Ethiopia improved access to credit information by establishing an online
platform for sharing such information and by guaranteeing borrowers right to inspect their personal
data in banks. In getting loan any business can use movable assets as collateral while keeping
possession of the assets and any financial institution accept such assets as collateral.

The Ethiopian Government has identified sesame as a high-priority crop, and is particularly
interested in increasing the countrys processing capabilities for a wide variety of end-market goods,
including hulled sesame, sesame oil, and tahini. Sesame is also a priority crop in the Agricultural
Growth Program (AGP), a Government led initiative to sustainably reduce poverty and hunger by
improving the productivity and competitiveness of value chains that offer job and income
opportunities for rural households (USAID, 2012).

105

The development bank of Ethiopia set up a project level incentive to attract investors especially in
the processing and exporting activities. The bank does not have an incentive specifically arranged
for the sesame sector. The reason behind this is that the sesame industry is too small, in terms of
employment generation, size of production and number of processing firms involved, to be
considered as a sub sector. Instead the Package is offered for businesses that add value and provide
their product to the international market in general. Interested investors in the area of processing and
exporting are offered a loan scheme at a rate of 8.5% which is lower as compared to the lending rate
of 9.5% on other ordinary loans. Special offers are especially available for investor in agro business,
commercial farm and export oriented activities that add value to the agricultural outputs.
The recent focus of Development Bank of Ethiopia is to provide medium and long term loans for
investment projects, which are engaged in agriculture and agro-processing preferably export
focused. With regard to this the economic sub-sectors for which the loanable financial resources
availed are listed under priority projects. The Bank undertakes due diligence or KYC assessment to
identify the integrity of the borrower, appraises the feasibility study submitted by the applicant and
finally makes decision on the approval of a loan. The prospective borrower is required to submit all
the required documents as per the check list provided below
A Short Guide to DBE's loans 6
1. loan application
2. marriage certificate/sole proprietorship
3. physical & natural conditions of the project area (for
agricultural project only)

10.. Commitment Charge

11. Maintenance and Provision of Financial &
Other Records
12.Engineering Estimation

4.contract agreement

13.Insurance

5.value added tax registration certificate (vat)

14. Application Letter

6. additional requirements for legal entitles/business

organization

www.dbe..et/service/guide.html

106

15.Current Account

7.documents required from applicant desiring to expand

existing project

16.Letter of Credit (L/C)

8.Review of past performance of the business (for at least

three years
9.Collateral Requirement

The private banks (United Bank s.c) are also providing different kinds of loan to sesame processors
especially for those that provide their product to the export market. One kind of loan is pre-shipment
loan finance. This is a loan given in the form of advance made to export customers of the bank on
the strength of sales contract and/or L/C document concluded and/or opened with a well known and
internationally recognized buyer. The requirements to get such loan are very much restricted one
since advance is very much risky. Its availed for highly reputed customers of the bank with strong
financial position and sound export performance. The exporter is also need to have adequate
capacity to buy from the local market, transport, store, clean, bag and ship the commodities in the
volume for which L/C is opened. The exported commodities should be marketable, non perishable
and has stable price in the international market. The amount of advance ranges from 20% to 70%
against sales contract depending on the track record and reputation of the customer in the business.
The loan doesnt require any collateral asset but the sales contract.
Another form of loan is overdraft facility which intends mainly to alleviate temporary financial
constraint. The facility is mainly extended for purchase of exportable commodities. The loan is
mainly given by using either exportable goods or export document depending on the cases. For
sesame processors both types of loan require ECX qualification certificate. A special loan scheme is
arranged for sesame processors that add value in cases they faced financial constraints to get the row
sesame they processed and export from farmers and cooperatives. Another form loan is what is
called working loan. The bank disburses the loan without concerning for what purpose its intended.
The only requirement is that the process of payment for the exported goods must pass through the
lending branch of the bank. But one should note that the procedures to get these loans so lengthy as a
result of several paper works an applicant has to fulfill.

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There are some factors; however, that limit commercial banks ability to give loan to encourage the
processing and exporting activities. Among which the major one is Central Bank directive that
mandated banks to devote 27% of their lending to priority national projects via purchases of
Government bonds, thus reducing the amount of financing capital available. In addition, sesame is
agricultural output and its production is strongly vulnerable to effects to drought which makes the
loan given such activities risk full. Thus making banks unwilling to lend as high as they give to other
sectors.
Insurance policies available to the sesame sector
Insurance coverage is the major form of transferring risk to a third party and there are several
insurance coverage options that sesame processors can buy so as to make their business more stable.
One form of insurance policy is called Marine inland transit (MRIT) insurance. This policy covers
damage on the sesame product as a result of car accident while the product is being transported from
farmers to processors. The MRIT insurance can be extended to cover for any damages on sesame
transported from warehouse (point of discharge) till it reaches Djibouti port (Point of destination).
The driver of the car even can get into an insurance called carrier liability insurance (CLI) so as to
cover the damages that might caused on the sesame they are transporting as a result of his/her fault.
There is also an insurance coverage to sesame stored in the warehouse which is called fire general
insurance (FRGN). This type of insurance covers only damages on the sesame in the warehouse as a
result of fire and/or lightening. But its possible to extend the coverage of the insurance into other
causes like earthquake and other causes called act of god which might include
Air craft damage
Spontaneous combustion
Storm, tempest and flood
Bush fire
Strike, riot and malicious damage, etc.
While the sesame is in the warehouse, it might be subject to some kind of robbery acts and an
insurance policy known as burglary insurance. This insurance works so long as the robbery is made
with forceful entrance.
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2. Infrastructure
Processing sesame within Ethiopia has the potential to both increase overall sesame revenue and
open up new markets. The investment would be facilitated by a robust macroeconomic environment
in Ethiopia, including political and macroeconomic growth and stability, multiple investment
incentives, and of all large-scale planned infrastructure investments. Though there is recent boom on
infrastructure development, the distribution of infrastructure shows great concentration in and
around Addis Ababa and oromia region as indicated by large concentration of firms in those areas.
These areas are characterized by improved access to water, transport, and electric infrastructure,
shipping containers, and security.
The Government is dedicated to clarifying policy and reducing bureaucracy for potential investors
through the development of a Project Management Unit housed in the ATA. Efforts to increase
access to financing, improve infrastructure along sesame supply chains, improve the security and
reliability of high-quality raw materials, and build the capacity of cooperatives and smallholder
farmers are already underway. The Government is also committed to improving key infrastructure in
order to facilitate agribusiness activity, as part of its five-year Growth and Transformation Plan.
These investments include increased air connectivity, improved road networks, and expansion of the
electricity supply. Key investments highlighted in the Growth and Transformation Plan include:
roadsbuilding 71,000 kilometers of new roads, including all-weather roads to virtually all kebele
administrations and a modern Birr 6 billion eight-lane expressway linking Addis Ababa to Adama, a
key route to facilitate export and import trade; railwayslaying 2,395 kilometers of new railways
linking Addis Ababa with Djibouti, linking selected domestic cities, and operating within Addis
Ababa itself; air transportexpanding Ethiopian Airlines fleet by 35 aircraft, including four new
cargo carriers, and building a huge new cargo hub at Bole Airport with a capacity to handle 125,000
tons per day in perishable export commodities, such as high-value fruits and vegetables; power
creating 8,000 megawatts of new power generation capacity; electricitylaying 132,000 kilometers
of new electricity distribution lines and extending electricity coverage to 75 percent of the country;
telecomincreasing mobile phone penetration to 45 percent of the population and mobile phone
users from 10 million to 40 million; waterexpanding the water supply infrastructure to reach 99
percent of the population and drilling some 3,000 water wells per year; irrigationIncreasing
irrigation coverage from 3 to 16 percent of total farm land.
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Major investments under the Governments Growth & Transformation Program (GTP) are targeted
at improving infrastructure across the country, which will benefit the sesame supply chain. Substandard infrastructure in rural Ethiopia poses a challenge for transportation and distribution, as the
sesame producing Humera region is in Northern Ethiopia, far from the processing facilities located
in and around Addis Ababa. Poor roads increase transportation costs, and electricity / water
shortages can result in a lost batch of hulled seeds. Investments under the GTP, among other
initiatives, will make transporting sesame easier and more cost-effective. Studies indicate that
electricity and water access has improved in Humera significantly in the past 5 years. However
warehousing and storage for raw sesame waiting transport remains deficiency. Investment in sesame
cultivation must include warehouses to protect the harvested sesame from shattering during drying
and to protect from winds and rain that can damage a harvest. There is still a room to facilitate
improvement in these key infrastructure services (USAID 2012).
A critical component of ensuring the competitiveness of Ethiopias sesame value chains is the
development of high-quality facility to provide road, electricity, water and other utilities. According
to the World Bank doing business report (2013) Ethiopia stands at 94 in the ranking of 185
economies on the ease of getting electricity. Getting electricity requires 4 procedures and takes 95
days which is much longer as compared to east African countries (30 days in Rwanda). Delays in
providing new connections made getting electricity more difficult which is prohibitive for new
investors. For instance a typical to get a warehouse connected to electricity by the local distribution
utility required to pass through the following procedures;
Submit application and await site visit from Ethiopian Electric Power Corporation
(EEPCo)
Receive site visit from EEPCo engineer and await estimate
Receive estimate, make payment and receive internal wiring inspection
EEPCo conducts external connection, meter installation and electricity starts flowing

Another aspect infrastructure that is essential for the development of sesame processing
availability of man power capable of installing, operating and repairing equipments and
machineries. In this regard processing firms have been suffering a lot especially in getting skilled
person to repair their capital inputs. The firms are using on job training and learning by doing
mechanisms as a way out to the scarce know how.
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3. Ease of doing business

Currently there are only a handful of companies in Ethiopia that are engaged in sesame
processing. Also the operation of these companies is quite limited to sesame hulling, apart from
one company that is also engaged in tahini production. Accordingly, no company in Ethiopia has
stepped into oil processing or other industrial utilization of sesame as of yet.

According to the report by the World Bank Ethiopia stands at 163 in the ranking of 185
economies on the ease of starting a business. The procedure are described as follows

Step 01: Check the company name for uniqueness:

Checking for the uniqueness of the company name is mandatory according to Article 19 of the
Proclamation 67/1997. The search is conducted at the Ministry of Trade and Industry. The party
completes a simple form and hands it over to the agent at window #1. The service is fully
computerized and the search is quick. A Letter of Recommendation (LR) will be given by the
agent and must be attached to the Memorandum and Articles of Association for authentication.
Trade names of a business operated by a sole proprietor should indicate the type of business
carried. The following names, however, are rejected:

Same name in the same field are not accepted,

Names which are antagonistic to moral issues,

Names including advertising adjectives- such as fastest way to transfer money and best
services in town- are not accepted, and

Names that are not fully represented only by numbers.

The LR issued must be attached to the Memorandum and Articles of Association when being
submitted for authentication.
Step 02: Authentication of the company documents and of the lease agreement at the office
of Document and Authentication and Registration Office
According to Proclamation 334/2003, Article 5, the Memorandum and Articles of Associations
must be signed by all partners and authenticated at the Ethiopian Document and Authentication
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and Registration Office. This document should clearly state the valuation of the contribution of
each applicant, in cash or in kind. In practice, as long as the Memorandum and Articles of
Association indicates that the capital is fully paid, demonstration of actual payment is not
required.
The party will deposit the documents and will be given an appointment for the following day. On
this appointment, the applicants may appear in person with an original copy of their Letter of
Appointment (Power of Attorney) and a valid Identity Card (National ID or Passport). The
officer in-turn checks the validity of the documents-with special emphasis on the value of the inkind contribution stated in the Memorandum, authenticity of the signatures and the genuineness
of the ID presented by applicants.
A flat rate Stamp Duty of ETB 350 (Proclamation 110/1998) is required at the same office where
the documents are being registered in the books prior to its authentication. Additional payment
includes service charge of ETB 10 (4 copies of Memorandum and Articles of Association). A
lease agreement may also be authenticated. In this case, there is an additional cost of 0.1% of the
lease value.
Step 03: Submit documents and obtain a letter from the Commercial Registry to open a
bank account
The applicant presents the Memorandum and Articles of Association, relevant IDs and Power of
Attorney (if done through one) in order to obtain a letter from the Commercial Registry
addressed to a chosen commercial bank so that an account may be opened under the new
company name.
Step 04: Open a bank account
Upon presentation of the letter from the Commercial Registry, the applicant opens a bank
account under the new company name and deposits the capital. The bank provides the applicant
with a confirmation letter stating that the deposit has been effected.

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Step 05: Register with Ethiopian Inland Revenue and Customs Authority
A newly established firm must register for income tax, payable at the end of the companys fiscal
year, and pay municipal and license renewal fees and withholding taxes on their employees.
Once registered, the Tax Identification Number (TIN) is provided along with the VAT/ToT
Certificate.
Step 06: Register and obtain the Commercial Registration Certificate
Once the applicant submits the proof of deposit, a Commercial Registration Certificate (also
commonly referred to as the Principal Registration) is issued to the applicant and the Ministry of
Trade. The applicant is required to attach the following documents along with the Commercial
Registration Certificate

The original Memorandum and Articles of Association.

TIN Certificate issued at ERCA

Bank confirmation letter of the applicant

Rent/Lease Agreement

Power of Attorney- if applicable

Photocopy valid ID (National ID or Passport)

Two passport-size photographs

In the case of Sole Proprietorship, a proof that the applicant has attained the age of 18.

In the case of Share Company:

a. A bank statement showing at-least one fourth (25%) of the par value of the
subscribed shares of the company is deposited in the bank account;
b. A report of the in kind contribution; and
c. Share certificates for each class of shares.

After reviewing the documents, including the lease agreement, the Commercial register delivers
a registration certificate and the appropriate license. Payment of ETB 102 is issued at the same
time. Provided that the application form has been completed and all necessary documents
presented to the satisfaction of the officers, the procedure will take only one day.

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Step 07: Make a company seal

While the law does not specifically require a company to have a seal, it is required in practice.
Step 08: Install a cash registration machine
Pursuant to the Council of Ministers Regulations No. 139/2007 to Provide for the Obligatory Use
of Sales Register Machines, all businesses must purchase and install a sales register machine in
order to comply with Tax obligations. The machines are available at certified supplier locations
around Addis Ababa. Once the machine is brought to the company offices, it must be properly
installed and set up so that it is linked to the Tax Administration System.
Export of Sesame
The Ministry of Trade requires a letter issued by the Inspection and Certification Case Team of
the Animal and Plant Health Regulatory Directory at the Ministry of Agriculture in order to issue
a permit for the export of Sesame Seed. To this end, an application form must be submitted to
MoA with the following documents:

Certificate of Competence issued from the Food, Medicine and Health Care
Administration and Control Authority of Ethiopia;

Lease or Rent Agreement for the Warehouse;

Valid license from Ethiopian Quality and Standard Authority for the Processing
(Cleaning) Machine- whether rented or purchased;

The Scales must be certified by the Ethiopian Quality and Standard Authority;

An assurance from Environment Protection Agency (EPA), in the form of a letter, stating
that the Processing (Cleaning) plant and the Warehouse will be able to dispose of waste
materials without having a deterring impact on the environment, society or individuals;

Employment Letter, CV and supporting documents of an Agronomist graduate with

sufficient knowledge that has been hired full time to work with the organization; and

In todays globalized world, making trade between economies easier is increasingly important
for business. Excessive document requirements, burdensome customs procedures, inefficient port
operations and inadequate infrastructure all lead to extra costs and delays for exporters and
importers, stifling trade potential. In the World Bank doing business report (2013) Ethiopia
114

stands at 161 in the ranking of 185 economies on the ease of trading across borders. Exporting a
standard container of goods requires 7 documents, takes 42 days and costs $2160 and importing
the same container of goods requires 9 documents, takes 44 days and costs $2660 on average
which is the second lowest in east Africa (above Eritrea). This results mainly from the large
number of documents and clearances one has to complete to finalize its import and export trade.
For instance a medium size business requires completing the following procedures to export or
import its product;
Documents preparation (which vary across businesses)
Customs clearance and technical control
Facilitate Ports and terminal handling
Make Inland transportation and handling at ports

The documents required to export include the following;

Bank Permit
Bill of lading
Commercial Invoice
Customs export declaration
Export permit
Health and fumigation certificate
Packing List
The documents required to import are;
Bill of lading
Certificate of origin
Commercial invoice
Customs import declaration
Foreign exchange authorization
Import permit
Insurance documentation
Packing list
Pre-shipment inspection clean report of findings

115

A significant share of the sesame seed produced in Ethiopia is exported with a little domestic
consumption. As such, sesame is mainly an export commodity in Ethiopia and is major source of
foreign exchange earnings. Therefore the Ethiopian government is attempting to support export
sector in general and sesame in particular by providing different types of facilities especially in
terms of loans. National bank of Ethiopia has established an export guarantee scheme to
encourage exporters to get financial support from commercial banks. The NBE in its directive
no. SBB/41/2007 has set the following preconditions to be eligible for the guarantee;

The export project to be financed under the export credit guarantee scheme shall be
bankable

Exporters shall not carry loss category loans, as defined in NBEs directives on
provisioning, owed to any bank in Ethiopia

Exporters shall present a bone-fide order from a foreign buyer

Exporters shall produce evidence of a valid investment certificate and/or trade license.

Commercial banks (United Bank s.c) provides different types of export loan such as term loan,
overdraft facilities, pre-shipment advances, and advance on export bills. Investors in Ethiopia
also enjoy several import / export incentives. These include:
100% customs import duty exemption
Agricultural and industrial machinery / equipment imported for investment purposes
Raw materials for production of export goods
Spare parts worth 15% of total investment capital goods
Export duty exemptions for products and services developed domestically
Additional export incentives include
Export Credit Scheme, Duty Drawback Scheme, Foreign Exchange Retention Scheme,
Foreign Credit and Loan Schemes
Access to 70% of capital investment financing at reasonable rates from the
Development Bank of Ethiopia (USAID, 2012)

4. Land Application

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According to the Investment Guide 2012, there are two broad classifications of land for rent or
lease purposes: rural land and urban land. Currently, there is nearly 11.55 million ha of potential
land for farming.

Rural land is rented mainly for agriculture. The Ministry of Agriculture is authorized to provide
land above 5000 ha, in addition to providing technical support for private investors for efficient
utilization of the afore mentioned land.

Urban land is divided into land for industrial use and land for other activities. Industrial land is
given much attention by the government and a number of industrial zones with the necessary
infrastructural facilities (roads, electricity, water, telephone) are established in the major cities
and towns. Land for export-oriented industries is generally available at concessionary rate. The
Ethiopian Investment Agency (EIA) has the mandate to facilitate the allocation of land for FDI
projects throughout the country. Urban land for other activities is available on an auction basis.
The auction prices vary, depending on demand.

According to the data presented by Ministry of Agriculture, the land that is permitted for farming
is for the cultivation of Cotton. As long as an organization can cultivate Cotton as a major
product, then the organization will be able to grow Sesame on a portion of the land. This also
takes into the benefit of cultivating Cotton with regards to the soil mineral content/fertility of the
land. According to the Investment Guide 2012, the land allocated for Cotton cultivation is
3,000,810 ha and is located in:

117

Tigray

SNNP

Oromiya

Amhara

Benishangul Gumz

Gambella

Afar, and

Somali

Until very recently, the products that the Ministry of Agriculture will warrant land for included
Palm, Sugarcane and Rubber Tree. But these products are currently on hold pending a thorough
Environmental Impact Assessment.
Procedures
1. Fill out Agriculture Investment Land Request Form at the Agricultural Investment
Support Directorate, Ministry of Agriculture. The documents that should be attached to
this form include

Identification Card/Passport

Power of Attorney (in case of Agents)

Article of Association and Memorandum of Association (in case of share

companies)

Investment License

Company Profile- stating the previous business history of the entity and
the volume of transaction during that period.

Letter of Interest to Pay a one year lease

Bank Statements of all accounts held by entity for the latest 12 months

Audit report done by an external Auditor which has to be in-line with the
Bank Statements

Confirmation letter to conduct and submit Environmental Audit Report

before the project commencement

Work Permit /Foreign Investor/

Resident Permit

TIN

CPO for land rent

2. The council will convene to check the validity of the application and, provided that all the
requested forms are complete, a decision will be made within three days.
3. Upon approval, a visit will be conducted at the land which is available for cultivation.
4. The

organization

will

be

expected

to

conduct

Environmental

Impact

Assessment/Environmental Audit Report. This Report is conducted by an external

consultant, who must be preapproved by the Ministry of Agriculture.

118

5. Simultaneously, a Business Plan is to be prepared by the entity in accordance to the

format provided by the Ministry of Agriculture- Guideline for Agricultural
Project/Business Planning.
Provided that all the documents required are present, then the procedure is expected to take a
period of three months.
5. Tax
Taxes are essential. They fund the public amenities, infrastructure and services that are crucial
for a properly functioning economy. But the level of tax rates needs to be carefully chosen and
needless complexity in tax rules should be avoided. Doing business report by the World Bank
(2013) indicates that a medium size business make 31 tax payments a year. Besides the process
of filing, preparing and paying taxes requires prohibitively quite a long procedures and many
paper works. The numbers of hours spend in paying taxes show a steady progress over the past
five years (198 hrs in 2008 to 306 hrs in 2013) which is lower as compared to sub-Saharan
Africa average (306 hrs) and higher in international standards (176 hrs). Recently the country has
introduced a social insurance contribution.

The kind of the taxes paid by a typical medium size business include the following
Corporate income tax
Property tax
Contribution for Pension of Private organization employees
Excise tax on fuel
Capital gains tax
License renewal fees
Tax on interest
Vehicle tax
Stamp duty on contracts
Value added tax (VAT)
Personal income tax

Though there is high crowd of taxes in the economy, the government offers a package of
incentives especially for business engaged in manufacturing or agro-industrial activities or the
119

Production of agricultural products supplied to an exporter. Proclamation no 280/2002 states that

firms engaged in the above mentioned activities that exports at least 50% of their products, or
supplies at least 75% of their product to an exporter as a production input are eligible for income
tax exemption for 5 years that might be extended to 7 years based on the decision of investment
board. The granting of income tax exemption for a period longer than 7 years requires the
decision of the Council of Ministers. An investor engaged in the above activities who exports
less than 50% of his/her products or supplies his/her products only to the domestic market shall
be eligible for income tax exemption for 2 years. Investments in relatively under developed
regions such as Gambella, Benishangul and Gumz, South Omo, Afar, Somali and other regions
to be determined by the Board, the investor shall be eligible for income tax exemption for an
additional 1 year period. According to the proclamation an investor who has incurred loss within
the period of income tax exemption shall be allowed to carry forward his loss for half of the
income tax exemption period, after the expiry of such period.

An investor is also allowed to import duty free capital goods and construction materials
necessary for the establishment of a new enterprise or for the expansion or upgrading of an
existing enterprise. The Board may, by its directives, bar the duty-free importation of capital
goods and construction materials where it finds that they are locally produced with competitive
price, quality and quantity.

6. Contract Enforcement
Sesame processors obtain their row sesame to be processed from farmers and cooperatives
through contracts. Such contracts usually specify the quantity and quality of product to be
delivered. Prices are typically fixed, although adjustments may be made according to current
market prices at the time of sale. Given the volatile nature of sesame price in the market
(especially after the involvement of ECX) local farmers do have an incentive to left their agreed
contract and supply directly to the market at higher price. Variable commodity prices could
tempt sesame cooperatives or out-growers away from agreed upon contracts if more lucrative
prices for their crops are available or if traders offer attractive side-selling options. This factor is
widely acknowledged by sesame processors and traders currently operating in Ethiopia, many of
whom articulate the need for better contracts
120

Thus incentivize sesame growers to fulfill contractual agreements is an important consideration.

The use of bonus programs, cash on delivery, and pricing agreements (offer a price premium up
to 10% above market price) with sesame cooperatives and farmers will help mitigate variable
prices and protect supply for processors as well as incentivize them to adhere to contract
agreements. Furthermore, by working with cooperatives rather than individual smallholder
sesame farmers, the investor will be able to simplify the process and leverage the buying power
associated with its large orders, as well as reduce some of the management burden typically
associated with out-growers. The investor might also provide farmers with certain inputs,
training, and production materials. Such an extension program with out-growers is expected to
increase sesame yields and quality of supply and is being undertaken by other agro-processors in
Ethiopia as well. Improved quality of raw material in turn lead to improved quality of sesame.
7.

Sesame Trade in ECX

In 2008/09 Ethiopian commodity exchange was established with the objective of institutionalizing
commodity trade like coffee, sesame and other products. ECX has established a directive that
dictates how and on what basis sesame transactions are undertaken. The directive includes
specifications and criterias that cover various aspects of sesame transaction.
Preparation of sesame product from farmers and cooperatives that is going out to be sold
at ECX ( for domestic as well as export market)
Obligations of sesame producing farmers and cooperatives that supply to ECX,
warehouse owners and processors.

Inspection of quality of sesame traded

ECX has established its outlets at major sesame production areas to which farmers and
cooperatives directly provide their product and first stage transaction takes place at these outlets.
Relative closeness to major production areas and access to road facility are the major
requirements to establish outlets. The raw sesame collected in these outlets then supplied via
licensed providers to the ECX market from where sesame processors and exporters buy. ECX
classifies the sesame it trades as reddish, whitish or mixed based on color and as Wellega and
Humera or Gondor based on where its produced.

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One key challenge commonly shared among existing processing companies is access to traceable
and homogeneous raw sesame seed. This has mainly to do with ECX sourcing that, according to
most processors, reduces access to traceable, homogeneous and high quality seed for processing.
Though prices are standardized by the introduction of the ECX, low yields and inconsistent
quality can result in farmers not maximizing the full income potential of their sesame production,
due to lower volumes sold to buyers. ECX reduces seed traceability, which decreases quality
assurances, and increases purchase price due to added transaction costs. One of the major factors
that determines export price of sesame, especially for processed sesame, is homogeneity in terms
of size, color and origin. As a result of ECX the quality of seeds can be unreliable and
untraceable, and the cumulative transaction costs erode the competitiveness of Ethiopian sesame
seeds on the global market. Even if the strict regulation that requires processors to get raw sesame
only through the ECX is getting more relaxed through negotiations and waivers, the alternative
option of getting sesame through a contract farming scheme with small producers and/or
cooperatives is also proved of not being that easy. Investors may gain exemption from sourcing
through the ECX if they can demonstrate that they are adding value to the product prior to export.
(USAID 2012).

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Cross-cutting Issues
Gender Consideration
Sesame is among potential and suitable crop for poverty alleviation in the nation. Emphasis
should be given to smallholder farmers to increase their production and productivity. Without
significant investment, farmers can make simple expenditure on sesame seed and equipments.
Sesame production at smallholder level is performed by family labor where women participation
is insignificant, as their primary responsibility is to manage household, engagement in sesame
farming activity is additional chore for them. On the other hand, at commercial farming level,
even though women are treated equally as men, cultivation and harvesting of sesame is hard for
women. Generally the involvement of women in sesame production is as seen below.
Smallholder

Communal land
Management

Large Scale

Women engage in sesame production

(20-40%), but are not represented in
sale of sesame
Women are given 1-2 position as
board members, but nonfunctional
role

Women engage in sesame

production (20-30%)

Women hired as labor, but bias

in favor of male labor

Triple work load: women

farm on individual and
communal land, and do
household work

Triple work load: women farm on

individual land, do household
work, and work as hired labor

Double work burden: farming and

household work

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APPENDIX:
Application Forms for Business Simulation
I.

124

Trade Name Verification Form

II.

125

Application Form for Business Registration (Page 1)

(Page 2)

126

Application Form for Business License (Page 1)

127

Page 2

128

MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT

LAND REQUEST FORM
1. General Information
Investors / Company Name _________________ _______________
Citizenship ___________________ Sex ___

2.

Address of the Investor / his legal representative

Region _________ ____ Zone /sub city __________
District ____________ Kebele _______ House Number _________
Telephone No ____________ Fax ___________ Email ______________ P.O.Box________

3.

Location of the Required Land :

Zone _______ District ______ Town ______ Kebele /Rural village ________
Particular Name (If any) ___________ Size of the requested land in ha ________
Plot number _____ Code ______

4.

Project Description
Sector _________________ Project Title ________________________________
Amount of Capital in Birr_____________ US dollar ____________

5. Expected Employment Opportunity in Number: Permanent____

Casual _____Total _______

6. Marketing Plan: Domestic _______% Foreign ______%

7. The following documents must be submitted with this Request form
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.

Identification card/Passport :
Power of Attorney ( in case of agents) :
Article of Association and memorandum of Association (in case of share companies) :
Investment License :
Company Profile : (From Ethiopian Embassy)
Letter of Interest to pay a one year lease :
Bank Statement at least a year :
Land use Plan :
Action Plan of the proposed Project :
Confirmation letter to conduct and submit environmental audit report before the project
commencement
Work Permit /Foreign Investors/
Resident Permit
TIN
CPO for land rent

Name ________________________ Signature ____________

Approved by: Agricultural Investment Support Directorate
Name _______________ Signature ________ Date _______

129

Ministry of Agriculture and Rural Development

Guideline for
Agricultural Project/Business Planning

130

May, 2010

Project Document Evaluation Checklist

A.

CHAPTER SUMMARIES

1. EXECUTIVE SUMMARY
2. INTRODUCTION
3. STUDY OF PROJECT SITE
4. SOCIO-ECONOMICS STUDY
5. ENVIRONMENTAL IMPACT ASSESSMENT
6. AGRONOMICAL/LIVESTOCK PROFILE
7. MARKET STUDY
8. FINANCIAL BUDGET
9. FINANCIAL AND ECONOMIC ANALYSIS
10. PLAN OF OPERATION
11. ORGANIZATIONAL STRUCTURE AND MANAGEMENT
12. PROJECT MONITORING AND EVALUATION
13. ANNEXES
B.

CHAPTER

1. EXECUTIVE SUMMARY

1.1
1.2

1.3
1.4
1.5

Project Title
Promoter profile
Location of the project /Region, District and PAS.
Project goal and purpose
Estimated cost of the project
Total cost
Capital cost
Operations cost
Contingency

1.6

1.7
131

Project component
Area
Types of investment
Estimated production (annual)
Expected Beneficiaries

 Permanent
Temporary
1.8
1.9

Duration of the Project

Risks and Uncertainty

2. INTRODUCTION

2.1

Name, Nationality, Promoter, Project Name, Contact Person, Legal Form of

Business, etc
Description of economic back ground and potential of the country, region
and district in relation to investment.
Features of the sector
Beneficiaries
Past and present intervention
Justification of the project why it is proposed?
Support for the Project
Goal and objective

2.2
2.3
2.4
2.5
2.6
2.7
2.8

Over all goal

Main and Specific objective
3.

STUDY OF THE PROJECT SITE

Descriptions of the area

Reason for selection of investment
Land ownership (lease, rent, etc.)
Physical and natural condition of project site climate (temperature, rainfall
data, relative humidity) soil conditions, etc.)
Area of land for investment in ha with expected expansion in the future.
Production of each commodity per ha with and without project
Description of infrastructures such as road, power, water, telephone, fax,
internet, etc.

4. SOCIO-ECONOMIC STUDY IMPORTANCE AND CONTRIBUTION OF THE

PROJECT

4.1
132

Socio-economic benefit for the society

Labor required (employment opportunity)

4.2
4.3
4.4

Poverty alleviation due to project intervention

Economic benefit for the community
Economic contribution to the country

5. AGRONOMIC/LIVESTOCK PROFILE/TECHNICAL STUDY

Production system and management
Physiology, Anatomy and Morphology of the proposed crop
Inputs required and their response to the investment crop & the project
area.
Production of each commodity with and without project
The expected productivity and production plan.
6. ENVIRONMENTAL
and negative)

AND SOCIO-ECONOMIC IMPACT ASSESSMENT(Positive

Preparing an Environmental Impact assessment after acquiring the investment land being an
inevitable obligation the following issues should be briefly discussed in the business plan

social aspect
Natural Resource management (nutrient, residue, crop, erosion, water)
agricultural practice aspect
7. MARKET STUDY

7.1 General Review

Description of market situation in the country and in the world in the past
three years.
Production for consumption and/or export.
Describe briefly the demand of market inside and in the world market.
Competitiveness of the intended project.

Identify problems on production quality, processing, pricing, etc.

133

 Design strategy to produce good quality product which is demanded by

customers.
7.2 Demand analysis
Factors affecting demand
Volume of demand
Historical data
-

Export trend, foreign and local

Import trend, foreign and local

Consumption trends foreign and local

Estimated demand analysis

-

Customer demand potential

Forecast demand trend to satisfy customers

Market penetration of customer

Performance of domestic firm engaged in the same business.

8. FINANCIAL BUDGET OF THE INVESTEMENT

Total financial requirement

For capital investment

For operating cost
For contingency
Source of fund

9. FINANCIAL AND ECONOMIC ANALYSIS

134

9.1

Price for input and output.

9.2
9.3
9.4
9.5

Credit and borrowing system.

Tax and subsidy policy
Export policy
Financial depreciation

9.6

Economic and financial analysis

Cash flow statement
Discount cash flow and discount rate
Benefit with and without project

9.7 Cost benefit analysis

Net Present Value (NPV)
Internal Rate of Return (IRR)
Benefit Cost Ratio (BCR)
Pay back period
9.8 Sensitivity analysis
Risk and Uncertainty
- Environmental protection
- Social-cultural aspects
- Institutional management
- Technology
- Price, etc.
10. PLAN OF OPERATION

Detail activity of the project which includes construction, land preparation,

planting, harvesting, storing transporting, export, etc
Indicators for each activity
Amount of labor and cost for each activity.
11. ORGANIZATIONAL STRUCTURE AND MANAGEMENT

Structure of project management which could show level of status.

Brief summary of each personnel with expected role.
Stake holder analysis which includes name, type of duties, role in the
project, impact, etc.
Skilled and unskilled manpower.
Permanent and temporary manpower.

135

12. PROJECT MONITORING AND EVALUATION

11.1

Monitoring: is a follow-up activity according to the schedule

for accomplishment.
Keep recording
Continuous collection of data and converting into
information
Provide data to improve management
Guide management decision
Insure implementation

11.2

Evaluation: the project evaluation is done at two stages.

Midterm evaluation: to revise objectives
methods for the project in progress
Project completion: which may done at the end
investment to estimate return

and
of

The results of the evaluation should be incorporated into the next project
planning and lessons learned from experience. It is important to keep recording
and planning process during operation. Likewise, the project management should
have to establish indicators for monitoring and evaluation to verify the success of
the investment.
13. Annex
May includes the following
1 -

Fixed asset list such as office, clinic, store and workshop with estimated cost

2.

Office furniture list with price

3 -

Machinery list with price

4 - Equipment list with price

5 -

Manpower list with salary

6 - Vehicles, and motor cycles with cost, etc.

7 -

Land use plan

8 - Map of the land

9 - Required expatriates and local professional and their duration of employment
136

Ministry of Agriculture and Rural

Development

Guideline for
Agricultural Project/Business Planning

137

Project Document Evaluation Checklist

C.

CHAPTER SUMMARIES

14. EXECUTIVE SUMMARY

15. INTRODUCTION
16. STUDY OF PROJECT SITE
17. SOCIO-ECONOMICS STUDY
18. ENVIRONMENTAL IMPACT ASSESSMENT
19. AGRONOMICAL/LIVESTOCK PROFILE
20. MARKET STUDY
21. FINANCIAL BUDGET
22. FINANCIAL AND ECONOMIC ANALYSIS
23. PLAN OF OPERATION
24. ORGANIZATIONAL STRUCTURE AND MANAGEMENT
25. PROJECT MONITORING AND EVALUATION
26. ANNEXES
D.

CHAPTER

14. EXECUTIVE SUMMARY

1.10
1.11

1.12
1.13
1.14

Project Title
Promoter profile
Location of the project /Region, District and PAS.
Project goal and purpose
Estimated cost of the project
Total cost
Capital cost
Operations cost
Contingency

1.15

1.16
138

Project component
Area
Types of investment
Estimated production (annual)
Expected Beneficiaries

 Permanent
Temporary
1.17
1.18

Duration of the Project

Risks and Uncertainty

15. INTRODUCTION

2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16

Name, Nationality, Promoter, Project Name, Contact Person, Legal Form of

Business, etc
Description of economic back ground and potential of the country, region
and district in relation to investment.
Features of the sector
Beneficiaries
Past and present intervention
Justification of the project why it is proposed?
Support for the Project
Goal and objective
Overall goal
Main and Specific objective

16. STUDY OF THE PROJECT SITE

Descriptions of the area

Reason for selection of investment
Land ownership (lease, rent, etc.)
Physical and natural condition of project site climate (temperature, rainfall
data, relative humidity) soil conditions, etc.)
Area of land for investment in ha with expected expansion in the future.
Production of each commodity per ha with and without project
Description of infrastructures such as road, power, water, telephone, fax,
internet, etc.

17. SOCIO-ECONOMIC STUDY IMPORTANCE AND CONTRIBUTION OF THE

PROJECT

4.5
139

Socio-economic benefit for the society

Labor required (employment opportunity)

4.6
Poverty alleviation due to project intervention
4.7
Economic benefit for the community
4.8
Economic contribution to the country
18. AGRONOMIC/LIVESTOCK PROFILE/TECHNICAL STUDY
Production system and management
Physiology, Anatomy and Morphology of the proposed crop
Inputs required and their response to the investment crop & the project
area.
Production of each commodity with and without project
The expected productivity and production plan.
19. ENVIRONMENTAL
and negative)

AND SOCIO-ECONOMIC IMPACT ASSESSMENT(Positive

Preparing an Environmental Impact assessment after acquiring the investment land being an
inevitable obligation the following issues should be briefly discussed in the business plan

social aspect
Natural Resource management (nutrient, residue, crop, erosion, water)
agricultural practice aspect
20. MARKET STUDY

7.3 General Review

Description of market situation in the country and in the world in the past
three years.
Production for consumption and/or export.
Describe briefly the demand of market inside and in the world market.
Competitiveness of the intended project.

Identify problems on production quality, processing, pricing, etc.

Design strategy to produce good quality product which is demanded by
customers.
140

7.4 Demand analysis

Factors affecting demand
Volume of demand
Historical data
-

Export trend, foreign and local

Import trend, foreign and local

Consumption trends foreign and local

Estimated demand analysis

-

Customer demand potential

Forecast demand trend to satisfy customers

Market penetration of customer

Performance of domestic firm engaged in the same business.

21. FINANCIAL BUDGET OF THE INVESTEMENT

Total financial requirement

For capital investment

For operating cost
For contingency
Source of fund

22. FINANCIAL AND ECONOMIC ANALYSIS

9.1

Price for input and output.

9.9 Credit and borrowing system.

9.10
Tax and subsidy policy
9.11
Export policy
9.12
Financial depreciation
9.13
Economic and financial analysis
Cash flow statement
141

 Discount cash flow and discount rate

Benefit with and without project
9.14

Cost benefit analysis

Net Present Value (NPV)

Internal Rate of Return (IRR)
Benefit Cost Ratio (BCR)
Pay back period
9.15

Sensitivity analysis

Risk and Uncertainty

- Environmental protection
- Social-cultural aspects
- Institutional management
- Technology
- Price, etc.
23. PLAN OF OPERATION

Detail activity of the project which includes construction, land preparation,

planting, harvesting, storing transporting, export, etc
Indicators for each activity
Amount of labor and cost for each activity.
24. ORGANIZATIONAL STRUCTURE AND MANAGEMENT

Structure of project management which could show level of status.

Brief summary of each personnel with expected role.
Stake holder analysis which includes name, type of duties, role in the
project, impact, etc.
Skilled and unskilled manpower.
Permanent and temporary manpower.

142

25. PROJECT MONITORING AND EVALUATION

11.3

Monitoring: is a follow-up activity according to the schedule

for accomplishment.
Keep recording
Continuous collection of data and converting into
information
Provide data to improve management
Guide management decision
Insure implementation

11.4

Evaluation: the project evaluation is done at two stages.

Midterm evaluation: to revise objectives
methods for the project in progress
Project completion: which may done at the end
investment to estimate return

and
of

The results of the evaluation should be incorporated into the next project
planning and lessons learned from experience. It is important to keep recording
and planning process during operation. Likewise, the project management should
have to establish indicators for monitoring and evaluation to verify the success of
the investment.
26. Annex
May includes the following
1 -

Fixed asset list such as office, clinic, store and workshop with estimated cost

2.

Office furniture list with price

3 -

Machinery list with price

4 - Equipment list with price

5 -

Manpower list with salary

6 - Vehicles, and motor cycles with cost, etc.

7 -

Land use plan

8 - Map of the land

9 - Required expatriates and local professional and their duration of employment

143